Omnicom Group (NYSE:OMC) Posts Earnings Results

Key Points

• Omnicom Group reported quarterly EPS of $2.65, slightly below the consensus estimate of $2.67. The company posted a 24.48% return on equity and a 0.32% net margin.
• Shares rose $3.90 to $86.31 during Tuesday trading, near the company’s 52-week high of $87.41. Institutional investors own approximately 91.97% of the stock.
• Omnicom declared a quarterly dividend of $0.80 per share, equivalent to $3.20 annually and a 3.7% yield. Analysts remain generally neutral, with a consensus “Hold” rating and a $99.38 price target.

Omnicom Group (NYSE:OMC - Get Free Report) announced its earnings results on Tuesday. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.67 by ($0.02), FiscalAI reports. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.

Omnicom Group Stock Performance

Shares of NYSE OMC traded up $3.90 during trading on Tuesday, reaching $86.31. 3,975,867 shares of the company traded hands, compared to its average volume of 4,557,636. The firm has a 50 day simple moving average of $76.59 and a 200-day simple moving average of $76.78. Omnicom Group has a 52-week low of $66.33 and a 52-week high of $87.41. The stock has a market capitalization of $24.60 billion, a PE ratio of 221.32, a P/E/G ratio of 0.48 and a beta of 0.63. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99.

Omnicom Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Friday, September 18th will be issued 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 of this dividend is Friday, September 18th. Omnicom Group's dividend payout ratio (DPR) is presently 820.51%.

Hedge Funds Weigh In On Omnicom Group

Several hedge funds and other institutional investors have recently modified their holdings of the company. Binnacle Investments Inc increased its position in Omnicom Group by 17.7% during the second quarter. Binnacle Investments Inc now owns 1,124 shares of the business services provider's stock valued at $81,000 after acquiring an additional 169 shares during the last quarter. Great Valley Advisor Group Inc. raised its position in Omnicom Group by 3.5% in the fourth quarter. Great Valley Advisor Group Inc. now owns 5,238 shares of the business services provider's stock worth $423,000 after acquiring an additional 176 shares during the period. GW&K Investment Management LLC raised its position in Omnicom Group by 104.9% in the fourth quarter. GW&K Investment Management LLC now owns 504 shares of the business services provider's stock worth $41,000 after acquiring an additional 258 shares during the period. Transamerica Financial Advisors LLC boosted its stake in shares of Omnicom Group by 2.2% during the 4th quarter. Transamerica Financial Advisors LLC now owns 13,441 shares of the business services provider's stock worth $1,086,000 after acquiring an additional 285 shares during the last quarter. Finally, Delta Global Management LP boosted its stake in shares of Omnicom Group by 6.8% during the 4th quarter. Delta Global Management LP now owns 4,774 shares of the business services provider's stock worth $386,000 after acquiring an additional 303 shares during the last quarter. 91.97% of the stock is owned by institutional investors.

Analyst Ratings Changes

OMC has been the subject of a number of research reports. Citigroup decreased their price objective on Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a report on Thursday, April 30th. Morgan Stanley upped their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an "equal weight" rating in a research report on Friday, May 1st. Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price target for the company. Weiss Ratings reissued a "hold (c-)" rating on shares of Omnicom Group in a research note on Friday, May 22nd. Finally, The Goldman Sachs Group initiated coverage on shares of Omnicom Group in a report on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price objective on the stock. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Omnicom Group presently has an average rating of "Hold" and a consensus price target of $99.38.

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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