WCG Wealth Advisors LLC Takes $1.12 Million Position in Omnicom Group Inc. $OMC

Key Points

• WCG Wealth Advisors LLC opened a new position in Omnicom Group, buying 13,846 shares worth about $1.12 million in the fourth quarter.
• Omnicom reported better-than-expected quarterly results, with EPS of $1.90 and revenue of $6.24 billion, and it also announced a $5 billion share buyback plan.
• Analyst sentiment remains mixed: the stock has a consensus Hold rating with an average price target of $99, while Omnicom also declared a quarterly dividend of $0.80 per share for a 4.3% yield.

WCG Wealth Advisors LLC bought a new stake in Omnicom Group Inc. (NYSE:OMC - Free Report) in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 13,846 shares of the business services provider's stock, valued at approximately $1,118,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. CIBC Asset Management Inc increased its stake in shares of Omnicom Group by 146.6% during the fourth quarter. CIBC Asset Management Inc now owns 80,559 shares of the business services provider's stock worth $6,505,000 after acquiring an additional 47,887 shares during the period. Bank of New York Mellon Corp increased its stake in shares of Omnicom Group by 69.6% during the fourth quarter. Bank of New York Mellon Corp now owns 11,283,863 shares of the business services provider's stock worth $911,172,000 after acquiring an additional 4,631,394 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of Omnicom Group by 89.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 6,106,022 shares of the business services provider's stock worth $493,061,000 after acquiring an additional 2,883,520 shares during the period. Kesler Norman & Wride LLC increased its stake in shares of Omnicom Group by 79.0% during the fourth quarter. Kesler Norman & Wride LLC now owns 20,493 shares of the business services provider's stock worth $1,655,000 after acquiring an additional 9,044 shares during the period. Finally, Bridges Investment Management Inc. increased its stake in shares of Omnicom Group by 12.9% during the fourth quarter. Bridges Investment Management Inc. now owns 20,097 shares of the business services provider's stock worth $1,623,000 after acquiring an additional 2,290 shares during the period. 91.97% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

OMC has been the topic of a number of recent analyst reports. 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, May 1st. Argus upgraded shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. UBS Group upped their target price on shares of Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Weiss Ratings reissued a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Finally, Barclays boosted their price target on Omnicom Group from $82.00 to $90.00 and gave the stock an "equal weight" rating in a research note on Monday, February 23rd. Five equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $99.00.

Omnicom Group Stock Down 0.5%

OMC stock opened at $75.28 on Friday. The company's 50 day simple moving average is $75.45 and its 200-day simple moving average is $76.57. The firm has a market capitalization of $21.46 billion, a PE ratio of 193.03, a P/E/G ratio of 0.45 and a beta of 0.63. Omnicom Group Inc. has a 12 month low of $66.33 and a 12 month high of $87.17. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.91 and a quick ratio of 0.77.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, beating the consensus estimate of $1.84 by $0.06. The business had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The company's quarterly revenue was up 69.2% on a year-over-year basis. During the same period in the prior year, the business earned $1.70 earnings per share. Equities analysts expect that Omnicom Group Inc. will post 10.97 earnings per share for the current fiscal year.

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

Omnicom Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Wednesday, June 10th will be given a dividend of $0.80 per share. The ex-dividend date is Wednesday, June 10th. This represents a $3.20 dividend on an annualized basis and a yield of 4.3%. Omnicom Group's dividend payout ratio (DPR) is 820.51%.

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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