UBS Group AG Trims Position in Omnicom Group Inc. $OMC

Key Points

• UBS trimmed its stake in Omnicom by 6.8% in Q4, selling 79,961 shares and now owning 1,090,250 shares (0.56%) worth about $88.0 million.
• Omnicom beat expectations with Q results of $1.90 EPS (vs. $1.84) and $6.24B revenue (up 69.2% YoY), and its board authorized a $5.0 billion share buyback while paying a $0.80 quarterly dividend (4.2% yield).
• Institutions are heavily invested (91.97% ownership) — Vanguard boosted its stake 64.2% to 38.9M shares (~$3.14B) — and analysts have a consensus “Hold” rating with a $93.71 average price target.

UBS Group AG trimmed its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 6.8% in the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 1,090,250 shares of the business services provider's stock after selling 79,961 shares during the period. UBS Group AG owned 0.56% of Omnicom Group worth $88,038,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Vanguard Group Inc. increased its stake in shares of Omnicom Group by 64.2% during the fourth quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock worth $3,143,930,000 after acquiring an additional 15,220,444 shares during the period. State Street Corp increased its stake in shares of Omnicom Group by 15.8% during the third quarter. State Street Corp now owns 16,863,327 shares of the business services provider's stock worth $1,384,980,000 after acquiring an additional 2,298,652 shares during the period. JPMorgan Chase & Co. increased its stake in shares of Omnicom Group by 30.5% during the third quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider's stock worth $660,969,000 after acquiring an additional 1,893,316 shares during the period. Massachusetts Financial Services Co. MA increased its stake in shares of Omnicom Group by 5.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 7,870,437 shares of the business services provider's stock worth $635,538,000 after acquiring an additional 433,461 shares during the period. Finally, Bank of New York Mellon Corp increased its stake in shares of Omnicom Group by 73.6% during the third quarter. Bank of New York Mellon Corp now owns 6,652,469 shares of the business services provider's stock worth $542,376,000 after acquiring an additional 2,820,553 shares during the period. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Trading Up 0.4%

Shares of OMC opened at $77.02 on Friday. The company has a current ratio of 0.91, a quick ratio of 0.81 and a debt-to-equity ratio of 0.99. The firm's 50-day moving average is $78.37 and its two-hundred day moving average is $76.81. Omnicom Group Inc. has a twelve month low of $66.33 and a twelve month high of $87.17. The firm has a market capitalization of $21.95 billion, a P/E ratio of 197.49, a PEG ratio of 0.59 and a beta of 0.66.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Tuesday, April 28th. The business services provider reported $1.90 earnings per share for the quarter, topping 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 for the quarter, compared to analyst estimates of $5.85 billion. During the same period in the prior year, the business posted $1.70 earnings per share. The firm's revenue for the quarter was up 69.2% compared to the same quarter last year. On average, research analysts predict that Omnicom Group Inc. will post 10.77 earnings per share for the current fiscal year.

Omnicom Group declared that its Board of Directors has authorized a stock repurchase program 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 programs are usually a sign that the company's management believes its stock is undervalued.

Omnicom Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Wednesday, March 11th were given a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 4.2%. The ex-dividend date was Wednesday, March 11th. Omnicom Group's dividend payout ratio is presently 820.51%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on OMC shares. Argus upgraded shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Morgan Stanley boosted their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a research note on Friday. Bank of America reiterated an "underperform" rating and set a $77.00 price target (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Barclays boosted their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Monday, February 23rd. Finally, Citigroup dropped their price target on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research note on Thursday. 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. According to MarketBeat.com, Omnicom Group has an average rating of "Hold" and a consensus price target 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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