Truist Financial Corp Boosts Holdings in Omnicom Group Inc. $OMC

Key Points

• Truist Financial Corp increased its stake in Omnicom by 21.9% in Q4, adding 27,067 shares to hold 150,909 shares worth about $12.19 million (≈0.08% ownership).
• Omnicom's board authorized a $5.0 billion stock buyback (up to ~38.1% of outstanding shares) and declared a quarterly dividend of $0.80 (annualized $3.20, yield ~4.2%).
• Omnicom beat recent expectations with EPS $1.90 vs $1.84 and revenue $6.24B vs $5.85B, though analysts' consensus remains a "Hold" with a $93.71 target price.

Truist Financial Corp increased its position in Omnicom Group Inc. (NYSE:OMC - Free Report) by 21.9% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 150,909 shares of the business services provider's stock after purchasing an additional 27,067 shares during the period. Truist Financial Corp owned approximately 0.08% of Omnicom Group worth $12,186,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Oppenheimer Asset Management Inc. boosted its stake in 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 valued at $8,831,000 after purchasing an additional 14,368 shares during the last quarter. Principal Financial Group Inc. raised 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 worth $153,068,000 after purchasing an additional 295,379 shares during the last quarter. Jackson Creek Investment Advisors LLC bought a new position in shares of Omnicom Group during the third quarter valued at $870,000. AustralianSuper Pty Ltd lifted its holdings in shares of Omnicom Group by 24.2% during the third quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider's stock valued at $10,579,000 after purchasing an additional 25,317 shares in the last quarter. Finally, National Pension Service boosted its position in shares of 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 buying an additional 29,014 shares during the last quarter. 91.97% of the stock is currently owned by institutional investors.

Omnicom Group Price Performance

Shares of NYSE:OMC opened at $76.84 on Friday. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. The stock has a market capitalization of $21.90 billion, a PE ratio of 197.03, a price-to-earnings-growth ratio of 0.59 and a beta of 0.66. The firm's 50 day moving average price is $78.07 and its 200-day moving average price is $76.78. Omnicom Group Inc. has a twelve month low of $66.33 and a twelve month high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last announced its earnings results on Tuesday, April 28th. The business services provider reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.84 by $0.06. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The company had revenue of $6.24 billion during the quarter, compared to analyst estimates of $5.85 billion. During the same period in the previous year, the business posted $1.70 earnings per share. The firm's quarterly revenue was up 69.2% compared to the same quarter last year. Equities research analysts expect that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group declared that its board has authorized a stock buyback plan on Wednesday, February 18th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to repurchase up to 38.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board believes its shares are undervalued.

Omnicom Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Wednesday, June 10th will be paid a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Wednesday, June 10th. Omnicom Group's dividend payout ratio is 820.51%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on OMC shares. UBS Group boosted their target price on Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Morgan Stanley raised their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a report on Friday, May 1st. Barclays boosted their price objective 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. Citigroup lowered their price objective on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Finally, Argus upgraded shares of Omnicom Group to a "hold" rating in a report on Thursday, March 26th. Four research 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, the stock presently has an average rating of "Hold" and a consensus target price of $93.71.

About Omnicom Group

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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