Omnicom Group (NYSE:OMC) Sees Large Volume Increase – What’s Next?

Omnicom Group Inc. (NYSE:OMC) shares saw unusually-high trading volume on Friday . Approximately 9,216,634 shares traded hands during trading, an increase of 149% from the previous session’s volume of 3,702,732 shares.The stock last traded at $72.05 and had previously closed at $71.50.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on OMC. Barclays lifted their price target on shares of Omnicom Group from $80.00 to $82.00 and gave the company 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 report on Wednesday, October 8th. Finally, Wells Fargo & Company raised Omnicom Group from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $78.00 to $91.00 in a report on Tuesday, September 23rd. Five equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, Omnicom Group has an average rating of “Moderate Buy” and a consensus target price of $96.57.

Omnicom Group Stock Performance

The stock’s 50 day simple moving average is $75.94 and its two-hundred day simple moving average is $74.90. The company has a market capitalization of $13.90 billion, a P/E ratio of 10.64, a P/E/G ratio of 1.43 and a beta of 0.94. 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 Tuesday, October 21st. The business services provider reported $2.24 earnings per share for the quarter, beating analysts’ consensus estimates of $2.17 by $0.07. Omnicom Group had a net margin of 8.31% and a return on equity of 33.30%. The business had revenue of $4.04 billion during the quarter, compared to analyst estimates of $4.02 billion. During the same quarter last year, the business posted $2.03 earnings per share. Omnicom Group’s revenue for the quarter was up 4.0% compared to the same quarter last year. As a group, research analysts expect that Omnicom Group Inc. will post 8.25 earnings per share for the current year.

Omnicom Group Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 9th. Stockholders of record on Friday, December 19th will be given a dividend of $0.80 per share. The ex-dividend date is Friday, December 19th. This is an increase from Omnicom Group’s previous quarterly dividend of $0.70. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.4%. Omnicom Group’s dividend payout ratio is presently 41.36%.

Institutional Trading of Omnicom Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Asset Management One Co. Ltd. increased its holdings in Omnicom Group by 3.5% in the second quarter. Asset Management One Co. Ltd. now owns 84,329 shares of the business services provider’s stock valued at $6,067,000 after purchasing an additional 2,855 shares during the last quarter. Defender Capital LLC. acquired a new position in shares of Omnicom Group during the 2nd quarter worth about $360,000. Vanguard Group Inc. increased its stake in shares of Omnicom Group by 1.5% in the 2nd quarter. Vanguard Group Inc. now owns 23,811,406 shares of the business services provider’s stock valued at $1,712,993,000 after acquiring an additional 344,652 shares during the last quarter. J2 Capital Management Inc bought a new stake in shares of Omnicom Group in the 2nd quarter valued at about $383,000. Finally, Goldman Sachs Group Inc. raised its position in shares of Omnicom Group by 42.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,965,974 shares of the business services provider’s stock valued at $245,909,000 after acquiring an additional 887,415 shares during the period. 91.97% of the stock is currently owned by institutional investors and hedge funds.

About Omnicom Group

Omnicom Group Inc, together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare.