Varma Mutual Pension Insurance Co Invests $10.12 Million in Omnicom Group Inc. $OMC

Key Points

• Varma Mutual Pension Insurance Co opened a new position in Omnicom, purchasing 125,300 shares worth roughly $10.12 million, equal to about 0.06% ownership.
• Omnicom's board authorized a $5.0 billion share repurchase program and declared a quarterly dividend of $0.80 (annualized $3.20, ~4.1% yield), though the reported payout ratio is very high at 820.51%.
• Analysts maintain a consensus "Hold" rating with an average target of $93.71 amid mixed price-target revisions, and Omnicom recently beat April-quarter estimates (EPS $1.90 vs $1.84; revenue $6.24B vs $5.85B) with revenue up 69.2% year-over-year.

Varma Mutual Pension Insurance Co purchased a new position in shares of Omnicom Group Inc. (NYSE:OMC - Free Report) during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 125,300 shares of the business services provider's stock, valued at approximately $10,118,000. Varma Mutual Pension Insurance Co owned 0.06% of Omnicom Group as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of OMC. Activest Wealth Management raised its holdings in shares of Omnicom Group by 2,960.0% during the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock worth $25,000 after acquiring an additional 296 shares during the period. Bayforest Capital Ltd purchased a new position in shares of Omnicom Group during the 4th quarter worth $26,000. Cornerstone Planning Group LLC raised its holdings in shares of Omnicom Group by 2,126.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock worth $27,000 after acquiring an additional 319 shares during the period. Meeder Asset Management Inc. raised its holdings in shares of Omnicom Group by 289.4% during the 3rd quarter. Meeder Asset Management Inc. now owns 366 shares of the business services provider's stock worth $30,000 after acquiring an additional 272 shares during the period. Finally, Westside Investment Management Inc. raised its holdings in shares of Omnicom Group by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 404 shares of the business services provider's stock worth $31,000 after acquiring an additional 202 shares during the period. Hedge funds and other institutional investors own 91.97% of the company's stock.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. UBS Group boosted their price objective on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a report on Friday, March 20th. Barclays upped their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research report on Monday, February 23rd. Citigroup decreased their target price 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. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Finally, Morgan Stanley upped their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $93.71.

Omnicom Group Stock Performance

NYSE OMC opened at $77.59 on Wednesday. The company has a market cap of $22.11 billion, a P/E ratio of 198.95, a P/E/G ratio of 0.59 and a beta of 0.66. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.91 and a quick ratio of 0.77. The stock has a 50-day moving average of $78.26 and a two-hundred day moving average of $76.79. Omnicom Group Inc. has a 1-year low of $66.33 and a 1-year high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Tuesday, April 28th. The business services provider reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.84 by $0.06. The company had revenue of $6.24 billion during the quarter, compared to the consensus estimate of $5.85 billion. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.Omnicom Group's revenue was up 69.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.70 EPS. As a group, analysts anticipate that Omnicom Group Inc. will post 10.91 EPS for the current year.

Omnicom Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be given a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend is Wednesday, June 10th. Omnicom Group's payout ratio is currently 820.51%.

Omnicom Group declared that its board has authorized a stock repurchase plan on Wednesday, February 18th that permits the company to repurchase $5.00 billion in shares. This repurchase authorization permits the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

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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