Omnicom Group Inc. (NYSE:OMC) Sees Large Growth in Short Interest

Omnicom Group Inc. (NYSE:OMC) was the recipient of a significant increase in short interest during the month of February. As of February 27th, there was short interest totaling 46,725,132 shares, an increase of 77.8% from the February 12th total of 26,283,358 shares. Based on an average trading volume of 8,084,294 shares, the short-interest ratio is currently 5.8 days. Currently, 15.2% of the shares of the stock are short sold. Currently, 15.2% of the shares of the stock are short sold. Based on an average trading volume of 8,084,294 shares, the short-interest ratio is currently 5.8 days.

Analysts Set New Price Targets

A number of research firms have weighed in on OMC. Morgan Stanley started coverage on shares of Omnicom Group in a research note on Tuesday, December 16th. They set an “equal weight” rating and a $88.00 target price on the stock. Bank of America restated an “underperform” rating and set a $77.00 price target (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Barclays boosted their price objective on Omnicom Group from $82.00 to $90.00 and gave the company an “equal weight” rating in a research note on Monday, February 23rd. Weiss Ratings reissued a “hold (c)” rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Finally, Citigroup raised their price objective on Omnicom Group from $103.00 to $115.00 and gave the company a “buy” rating in a research note on Friday, February 20th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $95.00.

Omnicom Group Stock Performance

NYSE:OMC opened at $77.74 on Friday. The business has a fifty day simple moving average of $77.76 and a two-hundred day simple moving average of $77.11. Omnicom Group has a 1 year low of $66.33 and a 1 year high of $87.17. The company has a market capitalization of $24.13 billion, a P/E ratio of 158.66, a P/E/G ratio of 0.75 and a beta of 0.71. The company has a debt-to-equity ratio of 0.60, a current ratio of 0.93 and a quick ratio of 0.81.

Omnicom Group (NYSE:OMC) last announced its quarterly earnings data on Wednesday, February 18th. The business services provider reported $2.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $5.53 billion during the quarter, compared to the consensus estimate of $7.58 billion. During the same quarter in the prior year, the firm posted $2.41 earnings per share. The company’s revenue was up 27.9% on a year-over-year basis. On average, analysts expect that Omnicom Group will post 8.25 earnings per share for the current year.

Omnicom Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 9th. Investors of record on Wednesday, March 11th will be paid a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Wednesday, March 11th. Omnicom Group’s payout ratio is presently 653.06%.

Omnicom Group announced that its board has initiated a share repurchase plan on Wednesday, February 18th that authorizes the company to buyback $5.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to repurchase up to 38.1% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in shares of Omnicom Group by 64.2% in the 4th quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider’s stock valued at $3,143,930,000 after acquiring an additional 15,220,444 shares in the last quarter. State Street Corp raised its stake in shares of Omnicom Group by 40.4% during the fourth quarter. State Street Corp now owns 23,676,768 shares of the business services provider’s stock worth $1,933,891,000 after acquiring an additional 6,813,441 shares in the last quarter. First Eagle Investment Management LLC bought a new stake in Omnicom Group in the third quarter worth $515,145,000. 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 acquiring an additional 4,631,394 shares during the last quarter. Finally, Wellington Management Group LLP lifted its position in Omnicom Group by 522.9% in the fourth quarter. Wellington Management Group LLP now owns 5,199,477 shares of the business services provider’s stock valued at $419,858,000 after purchasing an additional 4,364,797 shares during the last quarter. 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.