Omnicom Group (NYSE:OMC) Shares Gap Down - What's Next?

Key Points

• Omnicom shares gapped down pre-market, opening at $71.78 after a $76.52 close and last trading around $71.14 on volume of about 501,129 shares.
• Analysts' consensus is Hold with an average price target of $92.14; ratings are mixed (4 Buy, 4 Hold, 1 Sell), with recent notes including UBS raising its target to $108 and Morgan Stanley initiating coverage at Equal Weight.
• Omnicom raised its quarterly dividend to $0.80 (a $3.20 annualized payout), corresponding to a ~4.6% yield and a payout ratio of roughly 47%.

Omnicom Group Inc. (NYSE:OMC - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $76.52, but opened at $71.78. Omnicom Group shares last traded at $71.1440, with a volume of 501,129 shares traded.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Morgan Stanley started coverage on shares of Omnicom Group in a report on Tuesday, December 16th. They set an "equal weight" rating and a $88.00 price target for the company. UBS Group increased their target price on Omnicom Group from $99.00 to $108.00 and gave the company a "buy" rating in a research note on Friday, December 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Barclays increased their price objective on Omnicom Group from $80.00 to $82.00 and gave the company an "equal weight" rating in a research report on Thursday, October 23rd. Finally, Bank of America reaffirmed an "underperform" rating and set a $77.00 target price (down previously from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $92.14.

Omnicom Group Price Performance

The stock has a market cap of $13.38 billion, a price-to-earnings ratio of 10.26, a price-to-earnings-growth ratio of 1.24 and a beta of 0.74. The company has a quick ratio of 0.80, a current ratio of 0.92 and a debt-to-equity ratio of 0.95. The company's 50-day moving average is $77.75 and its 200-day moving average is $76.66.

Omnicom Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 19th were paid a $0.80 dividend. The ex-dividend date of this dividend was Friday, December 19th. This represents a $3.20 annualized dividend and a yield of 4.6%. This is a positive change from Omnicom Group's previous quarterly dividend of $0.70. Omnicom Group's payout ratio is presently 47.27%.

Institutional Investors Weigh In On Omnicom Group

Several large investors have recently made changes to their positions in OMC. Activest Wealth Management raised its stake in shares of Omnicom Group by 2,960.0% in the fourth quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock valued at $25,000 after acquiring an additional 296 shares during the last quarter. Bayforest Capital Ltd bought a new position in Omnicom Group in the 4th quarter valued at $26,000. Capital A Wealth Management LLC boosted its stake in Omnicom Group by 548.3% in the second quarter. Capital A Wealth Management LLC now owns 376 shares of the business services provider's stock worth $27,000 after purchasing an additional 318 shares in the last quarter. Cornerstone Planning Group LLC grew its holdings in shares of Omnicom Group by 2,126.7% during the third quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider's stock worth $27,000 after purchasing an additional 319 shares during the last quarter. Finally, Harbor Asset Planning Inc. bought a new position in shares of Omnicom Group in the second quarter valued at about $29,000. Institutional investors 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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