TCM Advisors LLC Makes New Investment in Omnicom Group Inc. $OMC

Key Points

• TCM Advisors LLC purchased 11,918 Omnicom Group shares worth approximately $868,000 during the second quarter, representing about 0.1% of its portfolio. Institutional investors collectively own 91.97% of OMC.
• Omnicom reported quarterly revenue of $6.56 billion, up 63.4% year over year and above expectations, though earnings of $2.65 per share narrowly missed estimates. The stock recently traded at $87.87, near its 52-week high.
• The company declared a quarterly dividend of $0.80 per share, or $3.20 annualized, producing a 3.6% yield. Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $99.

TCM Advisors LLC purchased a new stake in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 11,918 shares of the business services provider's stock, valued at approximately $868,000. Omnicom Group makes up about 0.1% of TCM Advisors LLC's investment portfolio, making the stock its 28th biggest position.

Other large investors have also added to or reduced their stakes in the company. Activest Wealth Management boosted its holdings in Omnicom Group by 2,960.0% in the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock worth $25,000 after buying an additional 296 shares during the period. Elyxium Wealth LLC bought a new stake in Omnicom Group during the fourth quarter valued at about $26,000. Legacy Wealth Managment LLC ID raised its holdings in Omnicom Group by 111.4% during the fourth quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock valued at $27,000 after acquiring an additional 176 shares during the period. EFG International AG purchased a new position in shares of Omnicom Group in the fourth quarter valued at about $28,000. Finally, Keating Financial Advisory Services Inc. purchased a new position in shares of Omnicom Group in the second quarter valued at about $25,000. Hedge funds and other institutional investors own 91.97% of the company's stock.

Omnicom Group Trading Up 0.4%

OMC stock opened at $87.87 on Monday. The firm has a fifty day moving average price of $80.34 and a 200 day moving average price of $77.58. Omnicom Group Inc. has a fifty-two week low of $66.33 and a fifty-two week high of $88.55. The firm has a market cap of $24.11 billion, a PE ratio of 75.75, a price-to-earnings-growth ratio of 0.58 and a beta of 0.64. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.78 and a current ratio of 0.92.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.67 by ($0.02). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The business had revenue of $6.56 billion for the quarter, compared to analysts' expectations of $6.44 billion. During the same period in the previous year, the company earned $2.05 EPS. Omnicom Group's revenue for the quarter was up 63.4% compared to the same quarter last year. Sell-side analysts anticipate that Omnicom Group Inc. will post 10.35 earnings per share for the current fiscal year.

Omnicom Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 3.6%. The ex-dividend date is Friday, September 18th. Omnicom Group's dividend payout ratio is currently 275.86%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on OMC shares. The Goldman Sachs Group initiated coverage on Omnicom Group in a research report on Wednesday, June 3rd. They set a "buy" rating and a $146.00 target price for the company. Weiss Ratings raised Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 30th. Morgan Stanley upped their price target on Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a research note on Friday, May 1st. Rothschild & Co Redburn initiated coverage on Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price target for the company. Finally, Zacks Research cut shares of Omnicom Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 30th. Four analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $99.00.

Omnicom Group 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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