Omnicom Group Inc. (NYSE:OMC) Receives Average Recommendation of “Hold” from Analysts

Omnicom Group Inc. (NYSE:OMC) has received a consensus rating of “Hold” from the nine brokerages that are covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and four have given a buy rating to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $95.8571.

A number of equities research analysts have issued reports on OMC shares. Barclays lifted their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the company an “equal weight” rating in a research note on Monday, February 23rd. Bank of America reaffirmed an “underperform” rating and issued a $77.00 price target (down from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. UBS Group lifted their price objective on Omnicom Group from $108.00 to $114.00 and gave the company a “buy” rating in a research report on Friday, March 20th. Argus upgraded Omnicom Group to a “hold” rating in a research note on Thursday, March 26th. Finally, Morgan Stanley started coverage on Omnicom Group in a research report on Tuesday, December 16th. They issued an “equal weight” rating and a $88.00 target price on the stock.

Hedge Funds Weigh In On Omnicom Group

Several hedge funds have recently bought and sold shares of the business. Quadrant Capital Group LLC increased its holdings in shares of Omnicom Group by 185.7% during the 2nd quarter. Quadrant Capital Group LLC now owns 6,603 shares of the business services provider’s stock valued at $475,000 after acquiring an additional 4,292 shares during the last quarter. Norges Bank acquired a new stake in Omnicom Group in the 2nd quarter worth approximately $8,855,000. New York State Common Retirement Fund lifted its holdings in Omnicom Group by 1.6% in the 2nd quarter. New York State Common Retirement Fund now owns 110,705 shares of the business services provider’s stock worth $7,964,000 after purchasing an additional 1,723 shares during the last quarter. Westerkirk Capital Inc. bought a new stake in Omnicom Group during the second quarter worth approximately $245,000. Finally, CW Advisors LLC boosted its position in Omnicom Group by 139.6% during the second quarter. CW Advisors LLC now owns 165,688 shares of the business services provider’s stock worth $11,920,000 after purchasing an additional 96,540 shares during the period. 91.97% of the stock is owned by institutional investors and hedge funds.

Omnicom Group Stock Down 0.0%

Shares of Omnicom Group stock opened at $75.31 on Thursday. Omnicom Group has a 1 year low of $66.33 and a 1 year high of $87.17. The company has a market cap of $21.46 billion, a P/E ratio of 153.69, a P/E/G ratio of 0.62 and a beta of 0.73. The company has a current ratio of 0.93, a quick ratio of 0.81 and a debt-to-equity ratio of 0.60. The stock has a 50-day moving average price of $76.95 and a 200 day moving average price of $76.92.

Omnicom Group (NYSE:OMC) last released its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share for the quarter, missing the consensus estimate of $2.94 by ($0.35). Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. The business had revenue of $5.53 billion for the quarter, compared to analysts’ expectations of $7.58 billion. During the same period last year, the firm earned $2.41 EPS. The company’s revenue was up 27.9% compared to the same quarter last year. As a group, analysts expect that Omnicom Group will post 8.25 EPS for the current fiscal year.

Omnicom Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Shareholders of record on Wednesday, March 11th will be paid a $0.80 dividend. The ex-dividend date is Wednesday, March 11th. This represents a $3.20 dividend on an annualized basis and a yield of 4.2%. Omnicom Group’s payout ratio is 653.06%.

Omnicom Group declared that its board has authorized a share repurchase plan on Wednesday, February 18th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 38.1% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

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.