Stock Traders Buy Large Volume of Omnicom Group Put Options (NYSE:OMC)

Key Points

• Omnicom Group Inc. experienced a significant increase in options trading, with 2,730 put options acquired, marking a 304% rise compared to its average daily volume.
• The company recently reported quarterly earnings of $2.05 per share, exceeding expectations and showing a year-over-year revenue increase of 4.2% to $4.02 billion.
• Omnicom Group announced a quarterly dividend of $0.70, representing an annualized dividend yield of 3.8%.

Omnicom Group Inc. (NYSE:OMC - Get Free Report) was the target of some unusual options trading on Friday. Stock traders acquired 2,730 put options on the stock. This represents an increase of approximately 304% compared to the typical volume of 676 put options.

Institutional Trading of Omnicom Group

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Harbor Asset Planning Inc. purchased a new stake in shares of Omnicom Group during the 2nd quarter worth $29,000. Zions Bancorporation National Association UT bought a new position in Omnicom Group in the first quarter worth about $34,000. Gen Wealth Partners Inc purchased a new position in shares of Omnicom Group in the 1st quarter worth approximately $36,000. Versant Capital Management Inc grew its position in shares of Omnicom Group by 45.7% in the 1st quarter. Versant Capital Management Inc now owns 456 shares of the business services provider's stock worth $38,000 after buying an additional 143 shares during the last quarter. Finally, Ameritas Advisory Services LLC purchased a new position in shares of Omnicom Group in the 2nd quarter worth approximately $34,000. Institutional investors own 91.97% of the company's stock.

Wall Street Analyst Weigh In

OMC has been the subject of several research analyst reports. Barclays cut Omnicom Group from an "overweight" rating to an "equal weight" rating and cut their price target for the company from $105.00 to $80.00 in a report on Wednesday, June 25th. JPMorgan Chase & Co. lowered their target price on Omnicom Group from $104.00 to $96.00 and set an "overweight" rating for the company in a research report on Thursday, July 10th. Bank of America raised shares of Omnicom Group from an "underperform" rating to a "neutral" rating and set a $80.00 price target on the stock in a research note on Monday, June 23rd. Finally, Wells Fargo & Company upgraded shares of Omnicom Group from an "equal weight" rating to an "overweight" rating and boosted their target price for the stock from $78.00 to $91.00 in a report on Tuesday. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, Omnicom Group presently has an average rating of "Moderate Buy" and an average price target of $96.29.

Omnicom Group Stock Up 3.0%

Shares of OMC traded up $2.20 during midday trading on Tuesday, reaching $76.73. 1,249,754 shares of the stock were exchanged, compared to its average volume of 3,589,963. Omnicom Group has a 52 week low of $68.37 and a 52 week high of $107.00. The company has a current ratio of 0.92, a quick ratio of 0.80 and a debt-to-equity ratio of 0.97. The company's 50 day moving average is $75.64 and its two-hundred day moving average is $75.25. The company has a market capitalization of $14.86 billion, a P/E ratio of 11.00, a PEG ratio of 1.49 and a beta of 0.97.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings data on Tuesday, July 15th. The business services provider reported $2.05 earnings per share for the quarter, topping analysts' consensus estimates of $2.02 by $0.03. Omnicom Group had a net margin of 8.67% and a return on equity of 33.62%. The company had revenue of $4.02 billion during the quarter, compared to analyst estimates of $3.95 billion. During the same period in the prior year, the firm earned $1.95 earnings per share. The firm's revenue for the quarter was up 4.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Omnicom Group will post 8.25 earnings per share for the current year.

Omnicom Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Tuesday, September 2nd. Omnicom Group's dividend payout ratio (DPR) is presently 40.17%.

About Omnicom Group

Omnicom Group Inc, together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare.