Omnicom Group Inc. (NYSE:OMC) Given Average Rating of "Hold" by Brokerages

Key Points

• Brokerages give Omnicom an overall consensus rating of "Hold" (1 sell / 4 hold / 4 buy) with an average 12‑month price target of $95.86, while some firms (UBS, Citi) have raised targets to roughly $114–115 and BofA keeps an underperform view at $77.
• Omnicom missed its latest quarter (EPS $2.59 vs. $2.94 est.; revenue $5.53B vs. $7.58B est.) despite 27.9% YoY revenue growth, and the board approved a $5.0 billion share buyback alongside a $0.80 quarterly dividend (annualized yield ~4.2%, reported payout ratio ~653%).

Shares of Omnicom Group Inc. (NYSE:OMC - Get Free Report) have received a consensus rating of "Hold" from the nine brokerages that are covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, four have given a hold recommendation and four have issued a buy recommendation on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $95.8571.

A number of equities research analysts have recently commented on the company. UBS Group raised their price target on Omnicom Group from $108.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Barclays upped their target price 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. Bank of America reiterated an "underperform" rating and set a $77.00 target price (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Citigroup boosted their price target on Omnicom Group from $103.00 to $115.00 and gave the company a "buy" rating in a report on Friday, February 20th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd.

Omnicom Group Trading Down 0.0%

NYSE OMC opened at $75.73 on Monday. The stock has a 50-day simple moving average of $78.02 and a 200 day simple moving average of $76.83. The company has a market capitalization of $21.58 billion, a PE ratio of 154.54, a P/E/G ratio of 0.58 and a beta of 0.73. 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 has a 12 month low of $66.33 and a 12 month high of $87.17.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.94 by ($0.35). The company had revenue of $5.53 billion for the quarter, compared to the consensus estimate of $7.58 billion. 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% on a year-over-year basis. During the same quarter last year, the business posted $2.41 EPS. Research analysts forecast that Omnicom Group will post 10.92 EPS for the current year.

Omnicom Group announced that its Board of Directors has approved a stock repurchase program on Wednesday, February 18th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Omnicom Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th were given 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 of this dividend was Wednesday, March 11th. Omnicom Group's payout ratio is currently 653.06%.

Institutional Trading of Omnicom Group

A number of hedge funds and other institutional investors have recently modified their holdings of OMC. EverSource Wealth Advisors LLC increased its stake in shares of Omnicom Group by 82.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock worth $138,000 after purchasing an additional 869 shares during the last quarter. Gamco Investors INC. ET AL acquired a new stake in Omnicom Group in the 2nd quarter valued at about $241,000. Gabelli Funds LLC bought a new position in Omnicom Group during the second quarter worth about $1,061,000. Daiwa Securities Group Inc. raised its stake in Omnicom Group by 5.3% in the second quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock valued at $2,113,000 after buying an additional 1,482 shares during the period. Finally, Sei Investments Co. increased its holdings in shares of Omnicom Group by 14.1% during the 2nd quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock worth $25,990,000 after acquiring an additional 44,746 shares during the last quarter. Institutional investors and hedge funds own 91.97% of the company's stock.

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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