ZWJ Investment Counsel Inc. Makes New $29.84 Million Investment in Omnicom Group Inc. $OMC

Key Points

• ZWJ Investment Counsel bought a new position of 369,492 shares of Omnicom (NYSE: OMC) in Q4, valued at approximately $29.84 million, representing about 0.19% ownership.
• Omnicom's board authorized a $5.00 billion share buyback (up to 38.1% of shares) and the company recently paid a quarterly $0.80 dividend (annualized $3.20, ~4.2% yield), though reported a very high payout ratio of 653%.
• Analysts are mixed — the consensus rating is a Hold with an average price target of $95.86, while UBS and Citi raised targets to $114/$115 and issued buy ratings (overall 4 Buy, 4 Hold, 1 Sell).

ZWJ Investment Counsel Inc. bought a new position in Omnicom Group Inc. (NYSE:OMC - Free Report) in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 369,492 shares of the business services provider's stock, valued at approximately $29,836,000. ZWJ Investment Counsel Inc. owned approximately 0.19% of Omnicom Group as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of OMC. Cornerstone Planning Group LLC raised its holdings in shares of Omnicom Group by 2,126.7% during the third 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 in the last quarter. Meeder Asset Management Inc. raised its stake 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 purchasing an additional 272 shares in the last quarter. Westside Investment Management Inc. raised its stake 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 purchasing an additional 202 shares in the last quarter. Flagship Harbor Advisors LLC purchased a new stake in shares of Omnicom Group during the 4th quarter worth about $32,000. Finally, Rialto Wealth Management LLC raised its stake in shares of Omnicom Group by 1,909.5% during the 4th quarter. Rialto Wealth Management LLC now owns 422 shares of the business services provider's stock worth $34,000 after purchasing an additional 401 shares in the last quarter. 91.97% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. UBS Group raised their price objective on shares of Omnicom Group from $108.00 to $114.00 and gave the company a "buy" rating in a research report on Friday, March 20th. Argus raised shares of Omnicom Group to a "hold" rating in a research report on Thursday, March 26th. Weiss Ratings reissued a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Morgan Stanley began coverage on shares of Omnicom Group in a report on Tuesday, December 16th. They set an "equal weight" rating and a $88.00 price target on the stock. Finally, Citigroup raised their price target on shares of Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a report on Friday, February 20th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Omnicom Group presently has an average rating of "Hold" and an average price target of $95.86.

Omnicom Group Stock Up 0.6%

OMC opened at $76.45 on Wednesday. The business has a 50 day moving average price of $76.73 and a 200 day moving average price of $76.89. Omnicom Group Inc. has a twelve month low of $66.33 and a twelve month high of $87.17. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.81 and a current ratio of 0.93. The firm has a market cap of $21.79 billion, a P/E ratio of 156.02, a price-to-earnings-growth ratio of 0.62 and a beta of 0.73.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its earnings results 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%.The company had revenue of $5.53 billion during the quarter, compared to analyst estimates of $7.58 billion. During the same quarter last year, the firm posted $2.41 earnings per share. The firm's revenue for the quarter was up 27.9% compared to the same quarter last year. Research analysts forecast that Omnicom Group Inc. will post 8.25 EPS for the current year.

Omnicom Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th were paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date was Wednesday, March 11th. Omnicom Group's payout ratio is presently 653.06%.

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

Omnicom Group 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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