Share Buyback Plan Initiated by Omnicom Group (NYSE:OMC) Board

Omnicom Group (NYSE:OMC) announced that its board has authorized a share repurchase program on Wednesday, February 18th, RTT News reports. The company plans to repurchase $5.00 billion in outstanding shares. This repurchase authorization permits the business services provider to buy up to 38.1% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Omnicom Group Trading Up 15.4%

OMC stock opened at $80.96 on Friday. The company has a market cap of $15.62 billion, a price-to-earnings ratio of 165.22, a PEG ratio of 1.06 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 business has a fifty day simple moving average of $77.04 and a 200-day simple moving average of $76.29. Omnicom Group has a 52 week low of $66.33 and a 52 week high of $89.27.

Omnicom Group (NYSE:OMC) last released its quarterly earnings data on Wednesday, February 18th. The business services provider reported $2.59 EPS for the quarter, missing analysts’ consensus estimates of $2.94 by ($0.35). The firm had revenue of $5.53 billion during the quarter, compared to analysts’ expectations of $7.58 billion. Omnicom Group had a positive return on equity of 35.41% and a negative net margin of 0.32%.The business’s revenue for the quarter was up 27.9% compared to the same quarter last year. During the same quarter last year, the business earned $2.41 earnings per share. On average, equities research analysts expect that Omnicom Group will post 8.25 EPS for the current year.

Omnicom Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 9th. Stockholders 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 dividend on an annualized basis and a dividend yield of 4.0%. This is a boost from Omnicom Group’s previous quarterly dividend of $0.70. Omnicom Group’s payout ratio is 47.27%.

Analyst Upgrades and Downgrades

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

Key Stories Impacting Omnicom Group

Here are the key news stories impacting Omnicom Group this week:

• Positive Sentiment: Board approved a $5.0 billion share repurchase program and executed $2.5 billion of accelerated share repurchase arrangements, signalling strong buyback support for the stock and immediate share count reduction. Omnicom Announces $5 Billion Share Repurchase Program and Entry into $2.5 Billion of Accelerated Share Repurchase Arrangements
• Positive Sentiment: Management raised cost-synergy targets for the combined company and emphasised integration/simplification progress — a constructive message that supports future margin improvement. Omnicom surges as buyback plan and post-merger update overshadow headline loss
• Positive Sentiment: The board declared a quarterly cash dividend of $0.80 per share payable April 9, reinforcing Omnicom’s shareholder-return mix (dividend + buybacks). Omnicom Declares Dividend
• Positive Sentiment: Fourth-quarter revenue showed a material boost tied to the IPG acquisition and new clients, supporting top-line growth expectations as the combined business begins to contribute. Ad giant Omnicom posts upbeat quarterly revenue on boost from IPG acquisition, new clients
• Neutral Sentiment: Omnicom scheduled an Investor Day for March 12 — a forum where management will likely provide more detail on integration, synergy realization and long‑term targets (near-term catalyst for guidance/visibility). Omnicom Announces 2026 Investor Day
• Negative Sentiment: Headline Q4 EPS missed consensus and Omnicom reported a GAAP net loss driven by merger- and integration-related charges; that explains the mixed market reaction despite strong revenue. Omnicom’s Q4 Earnings and Revenues Miss Estimates, Increase Y/Y
• Negative Sentiment: Quarter included significant non‑cash/one‑time costs (operating and gross‑profit impacts) that produced substantial GAAP operating and net losses — investors should watch how quickly non‑GAAP profitability converts to GAAP after integration. Omnicom Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Large institutional buying and upgraded analyst attention were reported heading into/post earnings, which can amplify upward momentum while buybacks are being executed. Omnicom Group Inc. (OMC) Stock Rises on Q4 2025 Earnings

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.