California State Teachers Retirement System Has $40.09 Million Holdings in Omnicom Group Inc. $OMC

California State Teachers Retirement System cut its holdings in shares of Omnicom Group Inc. (NYSE:OMC) by 2.5% in the first quarter, HoldingsChannel reports. The fund owned 532,308 shares of the business services provider’s stock after selling 13,488 shares during the quarter. California State Teachers Retirement System’s holdings in Omnicom Group were worth $40,088,000 as of its most recent SEC filing.

Other institutional investors have also recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its stake in Omnicom Group by 82.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider’s stock valued at $138,000 after buying an additional 869 shares during the last quarter. Gamco Investors INC. ET AL bought a new position in Omnicom Group in the 2nd quarter worth $241,000. Gabelli Funds LLC acquired a new position in Omnicom Group during the 2nd quarter worth $1,061,000. Daiwa Securities Group Inc. lifted its position in Omnicom Group by 5.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider’s stock worth $2,113,000 after acquiring an additional 1,482 shares during the last quarter. Finally, Sei Investments Co. boosted its holdings in Omnicom Group by 14.1% during the second quarter. Sei Investments Co. now owns 361,266 shares of the business services provider’s stock valued at $25,990,000 after acquiring an additional 44,746 shares during the period. 91.97% of the stock is currently owned by institutional investors and hedge funds.

Omnicom Group Stock Down 0.9%

NYSE:OMC opened at $78.86 on Friday. The stock’s fifty day moving average price is $77.29 and its two-hundred day moving average price is $76.89. Omnicom Group Inc. has a 52-week low of $66.33 and a 52-week high of $87.41. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.77 and a current ratio of 0.92. The company has a market cap of $21.64 billion, a price-to-earnings ratio of 67.98, a P/E/G ratio of 0.53 and a beta of 0.63.

Omnicom Group (NYSE:OMC) last posted its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share for the quarter, missing analysts’ consensus estimates of $2.67 by ($0.02). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The company had revenue of $6.56 billion during the quarter, compared to analyst estimates of $6.44 billion. During the same period last year, the company earned $2.05 EPS. The business’s revenue for the quarter was up 63.4% compared to the same quarter last year. On average, analysts anticipate that Omnicom Group Inc. will post 10.35 EPS for the current year.

Omnicom Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Shareholders of record on Friday, September 18th will be given a dividend of $0.80 per share. The ex-dividend date of this dividend is Friday, September 18th. This represents a $3.20 annualized dividend and a dividend yield of 4.1%. Omnicom Group’s payout ratio is 275.86%.

Key Headlines Impacting Omnicom Group

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

• Positive Sentiment: Wells Fargo raised its price target for Omnicom Group to $93 from $91 and maintained an “overweight” rating, citing potential upside from the company’s operating outlook. Wells Fargo price-target update
• Positive Sentiment: Citigroup lowered its target to $100 from $105 but retained a “buy” rating. The reduced target still implies substantial upside and suggests analysts view the recent weakness as an opportunity rather than a fundamental break in the investment case. Citigroup price-target update
• Positive Sentiment: Analysts highlighted Omnicom’s data and analytics investments, integrated media capabilities and merger-related cost synergies as potential drivers of longer-term revenue growth and profitability. Omnicom data and analytics outlook
• Neutral Sentiment: Omnicom’s latest quarter produced $6.56 billion in revenue, above the $6.44 billion consensus and up 63.4% year over year, while EPS of $2.65 narrowly missed the $2.67 estimate. The mixed result helps explain why strong sales growth has not translated into a clear stock catalyst. Omnicom Q2 earnings call highlights
• Neutral Sentiment: International revenue remains an important factor in Wall Street’s forecasts, making foreign-market performance and currency or regional risks relevant to the stock’s outlook. Omnicom international revenue analysis
• Negative Sentiment: Investors remain concerned about higher debt, integration expenses and margin pressure following the merger. Analysts have also trimmed estimates, creating uncertainty over how quickly anticipated synergies will improve earnings. Omnicom valuation analysis
• Negative Sentiment: Some commentary argues that OMC’s valuation and recent multiyear gains leave the shares vulnerable to profit-taking if organic growth or post-merger execution disappoints. Omnicom valuation commentary

Wall Street Analysts Forecast Growth

Several brokerages have commented on OMC. Rothschild & Co Redburn assumed coverage on Omnicom Group in a research report on Thursday, May 28th. They issued a “neutral” rating and a $89.00 price target on the stock. Wells Fargo & Company increased their price objective on Omnicom Group from $91.00 to $93.00 and gave the company an “overweight” rating in a research report on Thursday. Weiss Ratings upgraded shares of Omnicom Group from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday. Morgan Stanley raised 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. Finally, The Goldman Sachs Group initiated coverage on shares of Omnicom Group in a research report on Wednesday, June 3rd. They set a “buy” rating and a $146.00 target price on the stock. Four investment 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, Omnicom Group presently has a consensus rating of “Hold” and a consensus price target of $99.00.

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.