Omnicom Group (NYSE:OMC) Reaches New 1-Year High - Still a Buy?

Key Points

• Omnicom shares reached a new 52-week high of $89.02, up from a previous close of $87.07. The stock’s consensus analyst rating remains “Hold,” with an average price target of $99.
• Recent analyst views are mixed: Wells Fargo raised its target to $93 and maintained an “overweight” rating, while Goldman Sachs issued a “buy” rating with a $146 target; Zacks Research downgraded the stock to “strong sell.”
• Omnicom reported quarterly revenue of $6.56 billion, exceeding estimates, though earnings per share of $2.65 narrowly missed forecasts. The company announced a quarterly dividend of $0.80 per share, representing a 3.7% annualized yield.

Omnicom Group Inc. (NYSE:OMC - Get Free Report) shares hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $89.02 and last traded at $89.02, with a volume of 150 shares trading hands. The stock had previously closed at $87.07.

Analyst Ratings Changes

Several analysts have recently commented on OMC shares. Rothschild & Co Redburn started coverage on Omnicom Group in a report on Thursday, May 28th. They set a "neutral" rating and a $89.00 target price on the stock. Weiss Ratings raised Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 30th. Zacks Research downgraded shares of Omnicom Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 30th. Wells Fargo & Company increased their price objective on shares of Omnicom Group from $91.00 to $93.00 and gave the stock an "overweight" rating in a report on Thursday, July 30th. Finally, The Goldman Sachs Group initiated coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price objective for the company. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $99.00.

Omnicom Group Price Performance

The stock has a market capitalization of $23.73 billion, a P/E ratio of 74.56, a price-to-earnings-growth ratio of 0.58 and a beta of 0.64. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.78 and a current ratio of 0.92. The stock has a 50-day simple moving average of $80.11 and a 200 day simple moving average of $77.50.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share for the quarter, missing analysts' consensus estimates of $2.67 by ($0.02). The firm had revenue of $6.56 billion for the quarter, compared to the consensus estimate of $6.44 billion. Omnicom Group had a return on equity of 24.73% and a net margin of 1.74%.The company's revenue was up 63.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.05 EPS. On average, equities analysts forecast that Omnicom Group Inc. will post 10.35 earnings per share for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be given a dividend of $0.80 per share. The ex-dividend date is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a yield of 3.7%. Omnicom Group's dividend payout ratio is presently 275.86%.

Institutional Investors Weigh In On Omnicom Group

Institutional investors have recently modified their holdings of the business. Resona Asset Management Co. Ltd. increased its stake in Omnicom Group by 55.4% during the 4th quarter. Resona Asset Management Co. Ltd. now owns 98,842 shares of the business services provider's stock worth $7,976,000 after acquiring an additional 35,247 shares during the period. Generali Asset Management SPA SGR lifted its position in shares of Omnicom Group by 346.0% during the 4th quarter. Generali Asset Management SPA SGR now owns 20,580 shares of the business services provider's stock valued at $1,662,000 after acquiring an additional 15,966 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. lifted its position in shares of Omnicom Group by 70.0% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 674,065 shares of the business services provider's stock valued at $54,815,000 after acquiring an additional 277,665 shares during the period. New York State Teachers Retirement System grew its holdings in shares of Omnicom Group by 70.2% during the 4th quarter. New York State Teachers Retirement System now owns 251,174 shares of the business services provider's stock worth $20,282,000 after purchasing an additional 103,615 shares in the last quarter. Finally, Swiss Life Asset Management Ltd grew its holdings in shares of Omnicom Group by 901.4% during the 4th quarter. Swiss Life Asset Management Ltd now owns 481,765 shares of the business services provider's stock worth $38,903,000 after purchasing an additional 433,654 shares in the last quarter. Institutional investors and hedge funds own 91.97% of the company's stock.

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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