Storgate LLC Takes Position in Omnicom Group Inc. $OMC

Storgate LLC purchased a new stake in shares of Omnicom Group Inc. (NYSE:OMC) in the fourth quarter, according to its most recent 13F filing with the SEC. The fund purchased 8,431 shares of the business services provider’s stock, valued at approximately $681,000.

A number of other hedge funds have also recently made changes to their positions in OMC. AustralianSuper Pty Ltd grew its position in Omnicom Group by 24.2% in the third quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider’s stock worth $10,579,000 after acquiring an additional 25,317 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in Omnicom Group by 3.7% in the third quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 396,400 shares of the business services provider’s stock worth $32,318,000 after acquiring an additional 14,155 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its position in Omnicom Group by 155.3% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 91,116 shares of the business services provider’s stock worth $7,265,000 after acquiring an additional 55,421 shares in the last quarter. AIA Group Ltd purchased a new position in Omnicom Group in the third quarter worth $1,376,000. Finally, Deprince Race & Zollo Inc. grew its position in Omnicom Group by 34.0% in the fourth quarter. Deprince Race & Zollo Inc. now owns 524,037 shares of the business services provider’s stock worth $42,316,000 after acquiring an additional 133,093 shares in the last quarter. 91.97% of the stock is currently owned by hedge funds and other institutional investors.

Omnicom Group Stock Performance

Omnicom Group stock opened at $76.52 on Friday. 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 market capitalization of $21.81 billion, a PE ratio of 196.21, a P/E/G ratio of 0.45 and a beta of 0.63. The firm has a fifty day simple moving average of $75.49 and a two-hundred day simple moving average of $76.65. Omnicom Group Inc. has a twelve month low of $66.33 and a twelve month high of $87.17.

Omnicom Group (NYSE:OMC) last posted its quarterly earnings results 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. The business had revenue of $6.24 billion during the quarter, compared to the consensus estimate of $5.85 billion. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The firm’s revenue for the quarter was up 69.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.70 earnings per share. Research analysts expect that Omnicom Group Inc. will post 10.97 EPS for the current year.

Omnicom Group Announces Dividend

The firm also recently declared 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 of this dividend is Wednesday, June 10th. This represents a $3.20 annualized dividend and a yield of 4.2%. Omnicom Group’s payout ratio is currently 820.51%.

Omnicom Group announced that its board has authorized a stock repurchase program on Wednesday, February 18th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several research analysts recently issued reports on OMC shares. Rothschild & Co Redburn started coverage on shares of Omnicom Group in a research report on Thursday, May 28th. They issued a “neutral” rating and a $89.00 target price for the company. Barclays upped their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the stock an “equal weight” rating in a research report on Monday, February 23rd. Morgan Stanley upped their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the stock an “equal weight” rating in a research report on Friday, May 1st. Citigroup cut their target price on shares of Omnicom Group from $115.00 to $105.00 and set a “buy” rating for the company in a research report on Thursday, April 30th. Finally, Argus upgraded shares of Omnicom Group to a “hold” rating in a research report on Thursday, March 26th. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $99.00.

Omnicom Group 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.