Victory Capital Management Inc. Sells 197,000 Shares of Omnicom Group Inc. $OMC

Key Points

• Victory Capital Management reduced its stake in Omnicom by 11.5% in Q3, selling 197,000 shares and ending the period with 1,514,679 shares worth about $123.5 million (~0.78% of the company).
• Omnicom's board authorized a $5.0 billion buyback (up to 38.1% of outstanding shares) and declared a quarterly dividend of $0.80 per share (annualized $3.20, ~3.7% yield; ex-dividend March 11, payable April 9).
• Several analysts have raised targets (Citigroup to $115, UBS to $108) but the consensus rating is a "Hold" with a $95 target; Omnicom missed quarterly EPS at $2.59 vs. $2.94 despite revenue growing 27.9% year-over-year.

Victory Capital Management Inc. lessened its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 11.5% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 1,514,679 shares of the business services provider's stock after selling 197,000 shares during the quarter. Victory Capital Management Inc. owned approximately 0.78% of Omnicom Group worth $123,492,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also modified their holdings of the company. Cornerstone Planning Group LLC boosted its stake in Omnicom Group by 2,126.7% in the third quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock valued at $27,000 after acquiring an additional 319 shares during the last quarter. Meeder Asset Management Inc. lifted its stake in shares of Omnicom Group by 289.4% in the 3rd quarter. Meeder Asset Management Inc. now owns 366 shares of the business services provider's stock valued at $30,000 after purchasing an additional 272 shares during the period. Capital A Wealth Management LLC boosted its position in shares of Omnicom Group by 548.3% in the 2nd quarter. Capital A Wealth Management LLC now owns 376 shares of the business services provider's stock worth $27,000 after purchasing an additional 318 shares during the last quarter. Westside Investment Management Inc. boosted its position in shares of Omnicom Group by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 404 shares of the business services provider's stock worth $31,000 after purchasing an additional 202 shares during the last quarter. Finally, Quent Capital LLC acquired a new stake in shares of Omnicom Group during the third quarter worth $39,000. 91.97% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have weighed in on OMC shares. Citigroup increased their target price on Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a research note on Friday, February 20th. UBS Group upped their price target on Omnicom Group from $99.00 to $108.00 and gave the company a "buy" rating in a research note on Friday, December 5th. Barclays lifted their price objective 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. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Finally, Morgan Stanley started coverage on shares of Omnicom Group in a report on Tuesday, December 16th. They issued an "equal weight" rating and a $88.00 target price on the stock. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $95.00.

Omnicom Group Trading Up 1.5%

OMC opened at $85.91 on Thursday. The stock has a market capitalization of $26.66 billion, a P/E ratio of 175.33, a P/E/G ratio of 0.81 and a beta of 0.71. The company has a current ratio of 0.93, a quick ratio of 0.81 and a debt-to-equity ratio of 0.60. Omnicom Group Inc. has a 12 month low of $66.33 and a 12 month high of $89.27. The firm's fifty day simple moving average is $77.64 and its 200 day simple moving average is $76.94.

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

Omnicom Group declared that its board has authorized a stock buyback 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 reacquire up to 38.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's leadership believes its shares are undervalued.

Omnicom Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th will be paid a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date is Wednesday, March 11th. Omnicom Group's dividend payout ratio is currently 653.06%.

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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