Omnicom Group (NYSE:OMC) Sets New 52-Week High - Time to Buy?

Key Points

• Omnicom shares reached a new 52-week high, trading around $88.11, above their 50-day and 200-day moving averages. The stock has a $24.15 billion market capitalization and a relatively high P/E ratio of 75.86.
• Analyst sentiment remains mixed: four analysts rate the stock a Buy, five Hold and two Sell. The consensus rating is Hold, with an average price target of $99, while individual targets range from $89 to $146.
• Omnicom’s latest quarterly revenue rose 63.4% year over year to $6.56 billion, though adjusted EPS slightly missed estimates. The company declared a quarterly dividend of $0.80 per share, offering a 3.6% yield, but its payout ratio is elevated at 275.86%.

Omnicom Group Inc. (NYSE:OMC - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The company traded as high as $87.99 and last traded at $88.11, with a volume of 1090555 shares traded. The stock had previously closed at $85.51.

Analysts Set New Price Targets

OMC has been the topic of a number of analyst reports. Wells Fargo & Company lifted their price target on Omnicom Group from $91.00 to $93.00 and gave the company an "overweight" rating in a research note on Thursday, July 30th. Rothschild & Co Redburn began coverage on shares of Omnicom Group in a report on Thursday, May 28th. They issued a "neutral" rating and a $89.00 price target on the stock. Weiss Ratings raised Omnicom Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, July 30th. Zacks Research cut shares of Omnicom Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 30th. Finally, The Goldman Sachs Group assumed coverage on shares of Omnicom Group in a research note on Wednesday, June 3rd. They set a "buy" rating and a $146.00 price objective for the company. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Omnicom Group presently has an average rating of "Hold" and a consensus price target of $99.00.

Omnicom Group Stock Performance

The stock has a fifty day simple moving average of $78.70 and a two-hundred day simple moving average of $77.11. The stock has a market cap of $24.15 billion, a PE ratio of 75.86, a PEG ratio of 0.57 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.

Omnicom Group (NYSE:OMC - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The business services provider reported $2.65 EPS for the quarter, missing analysts' consensus estimates of $2.67 by ($0.02). Omnicom Group had a return on equity of 24.73% and a net margin of 1.74%.The firm had revenue of $6.56 billion during the quarter, compared to analyst estimates of $6.44 billion. During the same quarter in the prior year, the firm earned $2.05 EPS. The business's quarterly revenue was up 63.4% compared to the same quarter last year. Equities analysts anticipate that Omnicom Group Inc. will post 10.35 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be paid a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Friday, September 18th. Omnicom Group's dividend payout ratio is 275.86%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in OMC. Cibc World Market Inc. bought a new stake in Omnicom Group during the second quarter valued at $1,932,000. OMERS ADMINISTRATION Corp bought a new stake in shares of Omnicom Group during the second quarter valued at approximately $1,250,000. Osmosis Investment Management UK Ltd bought a new stake in Omnicom Group during the 2nd quarter valued at $558,000. Sanctuary Advisors LLC acquired a new stake in Omnicom Group in the second quarter worth about $2,753,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Omnicom Group in the 2nd quarter worth approximately $11,952,000. 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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