Omnicom Group (NYSE:OMC) Sets New 12-Month High - Time to Buy?

Key Points

• Omnicom Group shares hit a new 52-week high, reaching $87.41 and closing around $86.62, up 4.6% from the previous close.
• Analyst sentiment remains mixed: four analysts rate the stock a Buy, five a Hold and one a Sell. The consensus rating is Hold, with an average price target of $99.38.
• The company beat quarterly earnings and revenue estimates, while maintaining a quarterly dividend of $0.80 per share, equivalent to a 3.7% annual yield. Institutional investors own approximately 92% of the stock.

Omnicom Group Inc. (NYSE:OMC - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The company traded as high as $87.41 and last traded at $86.6150, with a volume of 1140727 shares. The stock had previously closed at $82.41.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Weiss Ratings restated a "hold (c-)" rating on shares of Omnicom Group in a report on Friday, May 22nd. The Goldman Sachs Group initiated coverage on Omnicom Group in a report on Wednesday, June 3rd. They issued a "buy" rating and a $146.00 price target for the company. Citigroup reduced their price target on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Rothschild & Co Redburn assumed coverage on shares of Omnicom Group in a report on Thursday, May 28th. They set a "neutral" rating and a $89.00 price objective on the stock. Finally, Morgan Stanley raised their price objective on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $99.38.

Omnicom Group Stock Up 4.6%

The firm has a 50 day moving average price of $76.59 and a 200-day moving average price of $76.78. The firm has a market cap of $24.58 billion, a price-to-earnings ratio of 221.39, a price-to-earnings-growth ratio of 0.48 and a beta of 0.63. 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 announced its quarterly earnings data on Wednesday, April 29th. The business services provider reported $1.90 EPS for the quarter, topping analysts' consensus estimates of $1.84 by $0.06. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The firm had revenue of $6.24 billion during the quarter, compared to analyst estimates of $5.85 billion. During the same period last year, the company earned $1.70 earnings per share. The company's revenue was up 69.2% on a year-over-year basis. As a group, equities analysts predict that Omnicom Group Inc. will post 10.97 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders 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 annualized dividend and a dividend yield of 3.7%. Omnicom Group's payout ratio is currently 820.51%.

Institutional Investors Weigh In On Omnicom Group

A number of institutional investors and hedge funds have recently modified their holdings of OMC. Vanguard Group Inc. grew its holdings in Omnicom Group by 64.2% during the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider's stock worth $3,143,930,000 after acquiring an additional 15,220,444 shares during the period. State Street Corp lifted its stake in shares of Omnicom Group by 40.4% in the 4th quarter. State Street Corp now owns 23,676,768 shares of the business services provider's stock valued at $1,933,891,000 after purchasing an additional 6,813,441 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Omnicom Group by 69.6% in the 4th quarter. Bank of New York Mellon Corp now owns 11,283,863 shares of the business services provider's stock valued at $911,172,000 after purchasing an additional 4,631,394 shares during the period. Wellington Management Group LLP boosted its position in shares of Omnicom Group by 522.9% in the 4th quarter. Wellington Management Group LLP now owns 5,199,477 shares of the business services provider's stock worth $419,858,000 after purchasing an additional 4,364,797 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Omnicom Group by 57.1% in the 4th quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider's stock worth $690,327,000 after purchasing an additional 3,117,188 shares during the last quarter. 91.97% of the stock is owned by institutional investors.

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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