Brokerages Set Omnicom Group Inc. (NYSE:OMC) Target Price at $95.86

Shares of Omnicom Group Inc. (NYSE:OMC) have received an average recommendation of “Hold” from the nine research firms that are currently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, four have issued a hold rating and four have issued a buy rating on the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $95.8571.

A number of brokerages have commented on OMC. Argus upgraded shares of Omnicom Group to a “hold” rating in a research note on Thursday, March 26th. Morgan Stanley began coverage on shares of Omnicom Group in a research note on Tuesday, December 16th. They set an “equal weight” rating and a $88.00 price objective on the stock. Barclays upped their target price on shares of Omnicom Group from $82.00 to $90.00 and gave the company an “equal weight” rating in a report on Monday, February 23rd. Bank of America reiterated an “underperform” rating and set a $77.00 price target (down from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Omnicom Group in a research report on Thursday, January 22nd.

Omnicom Group Trading Down 0.1%

Shares of Omnicom Group stock opened at $74.76 on Thursday. The stock has a market cap of $21.31 billion, a P/E ratio of 152.58, a P/E/G ratio of 0.61 and a beta of 0.73. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 0.60. Omnicom Group has a 12-month low of $66.33 and a 12-month high of $87.17. The business’s 50 day moving average is $76.76 and its 200-day moving average is $76.89.

Omnicom Group (NYSE:OMC) last released its earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share for the quarter, missing the consensus estimate of $2.94 by ($0.35). The firm had revenue of $5.53 billion during the quarter, compared to the consensus estimate of $7.58 billion. Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 25.65%. Omnicom Group’s quarterly revenue was up 27.9% compared to the same quarter last year. During the same period in the prior year, the business posted $2.41 earnings per share. Equities research analysts predict that Omnicom Group will post 8.25 earnings per share for the current fiscal year.

Omnicom Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Wednesday, March 11th will be paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Wednesday, March 11th. Omnicom Group’s payout ratio is currently 653.06%.

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

Institutional Investors Weigh In On Omnicom Group

A number of large investors have recently added to or reduced their stakes in the business. Oppenheimer Asset Management Inc. grew its position in shares of Omnicom Group by 15.3% in the third quarter. Oppenheimer Asset Management Inc. now owns 108,310 shares of the business services provider’s stock valued at $8,831,000 after purchasing an additional 14,368 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in Omnicom Group by 18.7% during 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 acquired a new stake in Omnicom Group during the 3rd quarter worth approximately $870,000. AustralianSuper Pty Ltd boosted its stake in Omnicom Group by 24.2% in the 3rd quarter. AustralianSuper Pty Ltd now owns 129,755 shares of the business services provider’s stock valued at $10,579,000 after purchasing an additional 25,317 shares during the period. Finally, National Pension Service boosted its stake in Omnicom Group by 35.3% in the 3rd quarter. National Pension Service now owns 111,161 shares of the business services provider’s stock valued at $9,063,000 after purchasing an additional 29,014 shares during the period. Institutional investors own 91.97% of the company’s stock.

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.