Omnicom Group Inc. (NYSE:OMC) Given Consensus Recommendation of “Hold” by Brokerages

Omnicom Group Inc. (NYSE:OMC) has earned a consensus recommendation of “Hold” from the eleven analysts that are covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell rating, five have given a hold rating and five have assigned a buy rating to the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $99.00.

OMC has been the subject of several analyst reports. Rothschild & Co Redburn initiated coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They issued a “neutral” rating and a $89.00 price objective for the company. The Goldman Sachs Group initiated coverage on shares of Omnicom Group in a research note on Wednesday, June 3rd. They issued a “buy” rating and a $146.00 price objective for the company. Morgan Stanley lifted their price objective on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an “equal weight” rating in a research note on Friday, May 1st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Omnicom Group in a research note on Friday, May 22nd. Finally, Barclays lifted their price objective on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an “equal weight” rating in a research note on Monday, February 23rd.

Omnicom Group Price Performance

Shares of Omnicom Group stock opened at $76.63 on Tuesday. Omnicom Group has a twelve month low of $66.33 and a twelve month high of $87.17. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. The company has a 50-day simple moving average of $75.53 and a two-hundred day simple moving average of $76.69. The stock has a market capitalization of $21.84 billion, a price-to-earnings ratio of 196.50, a price-to-earnings-growth ratio of 0.46 and a beta of 0.64.

Omnicom Group (NYSE:OMC) last issued its quarterly earnings data on Wednesday, April 29th. The business services provider reported $1.90 earnings per share for the quarter, topping the consensus estimate of $1.84 by $0.06. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The business had revenue of $6.24 billion during the quarter, compared to analysts’ expectations of $5.85 billion. During the same quarter in the previous year, the company earned $1.70 EPS. The business’s revenue was up 69.2% on a year-over-year basis. Analysts forecast that Omnicom Group will post 10.97 EPS for the current year.

Omnicom Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Wednesday, June 10th will be paid a $0.80 dividend. The ex-dividend date is Wednesday, June 10th. This represents a $3.20 annualized dividend and a yield of 4.2%. Omnicom Group’s payout ratio is 820.51%.

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

Hedge Funds Weigh In On Omnicom Group

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its position 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 buying an additional 15,220,444 shares in the last quarter. State Street Corp raised its position in shares of Omnicom Group by 40.4% in the 4th quarter. State Street Corp now owns 23,676,768 shares of the business services provider’s stock valued at $1,933,891,000 after buying an additional 6,813,441 shares in the last quarter. Bank of New York Mellon Corp raised its position in shares of Omnicom Group by 7.2% in the 1st quarter. Bank of New York Mellon Corp now owns 12,098,191 shares of the business services provider’s stock valued at $911,115,000 after buying an additional 814,328 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Omnicom Group by 57.1% in the 4th quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider’s stock valued at $690,327,000 after buying an additional 3,117,188 shares in the last quarter. Finally, JPMorgan Chase & Co. raised its position in shares of Omnicom Group by 30.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 8,107,021 shares of the business services provider’s stock valued at $660,969,000 after buying an additional 1,893,316 shares in the last quarter. 91.97% of the stock is currently owned by institutional investors and hedge funds.

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.