Omnicom Group (NYSE:OMC) Shares Gap Up – Still a Buy?

Omnicom Group Inc. (NYSE:OMC) shares gapped up before the market opened on Thursday . The stock had previously closed at $70.16, but opened at $74.48. Omnicom Group shares last traded at $78.9630, with a volume of 2,508,331 shares.

Key Stories Impacting Omnicom Group

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

• Positive Sentiment: Board approved a large $5.0 billion share-repurchase program and the company has executed $2.5 billion of accelerated share repurchase (ASR) arrangements, which immediately reduces share count and supports near-term EPS and share demand. Omnicom Announces $5 Billion Share Repurchase Program and Entry into $2.5 Billion of Accelerated Share Repurchase Arrangements
• Positive Sentiment: Revenue and new-client momentum: Omnicom reported revenue up ~27.9% to $5.53B (Q4) and media/regional wins plus contribution from recent deal activity were cited as drivers — supporting growth expectations beyond the quarter. Ad giant Omnicom posts upbeat quarterly revenue on boost from IPG acquisition, new clients
• Positive Sentiment: Institutional buying and income appeal: large institutions increased exposure and the stock’s dividend plus the buyback/ASR make OMC more attractive to income-focused and long-only investors, adding bid-side support. Omnicom Group Inc. (OMC) Stock Rises on Q4 2025 Earnings
• Neutral Sentiment: Investor Day scheduled for March 12, 2026 — a chance for management to flesh out integration progress, capital-allocation priorities and medium-term outlook; could drive further sentiment shifts depending on guidance. Omnicom Announces 2026 Investor Day
• Negative Sentiment: Earnings headline weakness and one-time charges: Omnicom missed EPS expectations (reported $2.59 vs. consensus) and disclosed GAAP-level losses tied to integration/transaction-related items (net loss near $0.9B), which created initial volatility despite strong revenue. Investors are parsing adjusted vs. GAAP metrics. Omnicom’s Q4 Earnings and Revenues Miss Estimates, Increase Y/Y

Wall Street Analysts Forecast Growth

OMC has been the subject of several research reports. Bank of America restated an “underperform” rating and set a $77.00 price objective (down from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. Barclays boosted their price target on Omnicom Group from $80.00 to $82.00 and gave the stock an “equal weight” rating in a report on Thursday, October 23rd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Morgan Stanley assumed coverage on shares of Omnicom Group in a research note on Tuesday, December 16th. They issued an “equal weight” rating and a $88.00 target price for the company. Finally, UBS Group upped their target price on shares of Omnicom Group from $99.00 to $108.00 and gave the company a “buy” rating in a report on Friday, December 5th. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $92.14.

Omnicom Group Stock Performance

The firm has a market cap of $15.32 billion, a PE ratio of 11.74, a P/E/G ratio of 1.05 and a beta of 0.74. The stock has a 50-day moving average price of $77.02 and a 200 day moving average price of $76.26. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.92 and a quick ratio of 0.80.

Omnicom Group (NYSE:OMC) last issued its quarterly earnings results 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). The business had revenue of $5.53 billion during the quarter, compared to analyst estimates of $7.58 billion. Omnicom Group had a return on equity of 33.30% and a net margin of 8.31%.The firm’s quarterly revenue was up 27.9% on a year-over-year basis. During the same period in the previous year, the business posted $2.41 earnings per share. Research analysts forecast that Omnicom Group Inc. will post 8.25 earnings per share for the current year.

Omnicom Group Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 19th were issued a $0.80 dividend. The ex-dividend date was Friday, December 19th. This is a positive change from Omnicom Group’s previous quarterly dividend of $0.70. This represents a $3.20 dividend on an annualized basis and a yield of 4.0%. Omnicom Group’s payout ratio is presently 47.27%.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in OMC. Asset Management One Co. Ltd. raised its holdings in shares of Omnicom Group by 3.5% during the second quarter. Asset Management One Co. Ltd. now owns 84,329 shares of the business services provider’s stock worth $6,067,000 after acquiring an additional 2,855 shares in the last quarter. Oppenheimer Asset Management Inc. increased its position in Omnicom Group by 15.3% in the 3rd quarter. Oppenheimer Asset Management Inc. now owns 108,310 shares of the business services provider’s stock worth $8,831,000 after purchasing an additional 14,368 shares during the last quarter. Principal Financial Group Inc. increased its position in Omnicom Group by 18.7% in the 3rd quarter. Principal Financial Group Inc. now owns 1,877,462 shares of the business services provider’s stock worth $153,068,000 after purchasing an additional 295,379 shares during the last quarter. Jackson Creek Investment Advisors LLC purchased a new stake in shares of Omnicom Group during the 3rd quarter worth about $870,000. Finally, National Pension Service lifted its holdings in shares of Omnicom Group by 35.3% during the 3rd quarter. National Pension Service now owns 111,161 shares of the business services provider’s stock valued at $9,063,000 after buying an additional 29,014 shares during the last quarter. Institutional investors and hedge funds 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.