Sumitomo Mitsui Trust Group Inc. Has $67.68 Million Stock Position in Omnicom Group Inc. $OMC

Key Points

• Sumitomo Mitsui Trust Group boosted its stake in Omnicom by 47.3% in Q4 to 838,158 shares worth about $67.68 million (≈0.43% of the company).
• Omnicom's board authorized a $5.0 billion share buyback (up to 38.1% of outstanding shares) and paid a quarterly dividend of $0.80 (annualized $3.20, ~4.2% yield).
• The company missed Q4 expectations (EPS $2.59 vs. $2.94 consensus; revenue $5.53B vs. $7.58B) and trades at a high P/E (~156), while analysts' consensus rating is "Hold" with an average target of $95.86.

Sumitomo Mitsui Trust Group Inc. boosted its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 47.3% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 838,158 shares of the business services provider's stock after buying an additional 269,045 shares during the period. Sumitomo Mitsui Trust Group Inc. owned approximately 0.43% of Omnicom Group worth $67,681,000 as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. Oppenheimer Asset Management Inc. increased its holdings in shares of Omnicom Group by 15.3% during the 3rd quarter. Oppenheimer Asset Management Inc. now owns 108,310 shares of the business services provider's stock worth $8,831,000 after purchasing an additional 14,368 shares during the period. Principal Financial Group Inc. lifted its stake in shares of Omnicom Group by 18.7% in the third quarter. Principal Financial Group Inc. now owns 1,877,462 shares of the business services provider's stock valued at $153,068,000 after buying an additional 295,379 shares during the period. Jackson Creek Investment Advisors LLC acquired a new stake in Omnicom Group during the third quarter worth about $870,000. AustralianSuper Pty Ltd grew its position in Omnicom Group by 24.2% during the third quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider's stock worth $10,579,000 after buying an additional 25,317 shares in the last quarter. Finally, National Pension Service increased its stake in Omnicom Group by 35.3% during the third quarter. National Pension Service now owns 111,161 shares of the business services provider's stock valued at $9,063,000 after acquiring an additional 29,014 shares during the period. 91.97% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have commented on OMC shares. Morgan Stanley initiated coverage on Omnicom Group in a research report on Tuesday, December 16th. They issued an "equal weight" rating and a $88.00 price objective for the company. Bank of America restated an "underperform" rating and set a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Citigroup lifted their price target on shares of Omnicom Group from $103.00 to $115.00 and gave the stock a "buy" rating in a research note on Friday, February 20th. Finally, Barclays boosted their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Omnicom Group has an average rating of "Hold" and an average target price of $95.86.

Omnicom Group Stock Performance

Shares of NYSE:OMC opened at $76.45 on Wednesday. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.93 and a quick ratio of 0.81. The business's fifty day moving average price is $76.73 and its two-hundred day moving average price is $76.89. Omnicom Group Inc. has a fifty-two week low of $66.33 and a fifty-two week high of $87.17. The stock has a market capitalization of $21.79 billion, a price-to-earnings ratio of 156.02, a price-to-earnings-growth ratio of 0.62 and a beta of 0.73.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The business services provider reported $2.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.94 by ($0.35). Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. The company had revenue of $5.53 billion for the quarter, compared to the consensus estimate of $7.58 billion. During the same period in the previous year, the business posted $2.41 earnings per share. The firm's revenue was up 27.9% compared to the same quarter last year. As a group, analysts predict that Omnicom Group Inc. will post 8.25 EPS for the current fiscal year.

Omnicom Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Wednesday, March 11th were issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 4.2%. The ex-dividend date of this dividend was Wednesday, March 11th. Omnicom Group's dividend payout ratio (DPR) is currently 653.06%.

Omnicom Group announced that its Board of Directors has authorized a stock buyback program on Wednesday, February 18th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 38.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's management believes its shares are undervalued.

Omnicom Group Company Profile

Omnicom Group Inc NYSE: OMC is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company's primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.

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