Omnicom Group (NYSE:OMC) Shares Gap Up After Dividend Announcement

Omnicom Group Inc. (NYSE:OMC)’s share price gapped up before the market opened on Thursday following a dividend announcement from the company. 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 trading hands.

The newly announced dividend which will be paid on Thursday, April 9th. Shareholders of record on Wednesday, March 11th will be issued a dividend of $0.80 per share. The ex-dividend date is Wednesday, March 11th. This represents a $3.20 annualized dividend and a yield of 3.8%. Omnicom Group’s dividend payout ratio is presently 47.27%.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. UBS Group upped their price objective on shares of Omnicom Group from $99.00 to $108.00 and gave the stock a “buy” rating in a research report on Friday, December 5th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Citigroup lifted their price target on shares of Omnicom Group from $103.00 to $115.00 and gave the stock a “buy” rating in a report on Friday. Bank of America reissued an “underperform” rating and issued a $77.00 target price (down from $87.00) on shares of Omnicom Group in a research report on Monday, January 5th. Finally, Morgan Stanley initiated coverage on Omnicom Group in a research report on Tuesday, December 16th. They set an “equal weight” rating and a $88.00 price target on the stock. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $93.86.

Omnicom Group Stock Up 2.8%

The company has a debt-to-equity ratio of 0.95, a current ratio of 0.92 and a quick ratio of 0.80. The firm has a market cap of $16.06 billion, a PE ratio of 169.80, a PEG ratio of 1.22 and a beta of 0.74. The stock has a 50 day simple moving average of $77.10 and a 200-day simple moving average of $76.37.

Omnicom Group (NYSE:OMC) last released its quarterly earnings data 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 company had revenue of $5.53 billion for the quarter, compared to analysts’ expectations of $7.58 billion. Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 35.41%. The firm’s revenue for the quarter was up 27.9% on a year-over-year basis. During the same period in the previous year, the firm earned $2.41 earnings per share. Sell-side analysts predict that Omnicom Group Inc. will post 8.25 EPS for the current fiscal year.

Trending Headlines about Omnicom Group

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

• Positive Sentiment: Board-authorized $5.0 billion share repurchase program (includes a $2.5B accelerated repurchase) — large buyback signals management thinks shares are undervalued and directly reduces float, supporting the stock. Article Title
• Positive Sentiment: Quarterly dividend declared: $0.80 per share (record March 11; payable April 9), boosting yield and making OMC more attractive to income investors. Article Title
• Positive Sentiment: Analyst upgrade/target lift — Citi raised its price target to $115 and reaffirmed a Buy, implying meaningful upside versus recent levels and providing fresh analyst support. Article Title
• Positive Sentiment: Management highlighted post‑merger integration progress (raised cost‑synergy targets) and scheduled an Investor Day (March 12), which together suggest clearer visibility on cost savings and strategy that could boost margins long term. Article Title
• Positive Sentiment: Heavy institutional buying reported in recent filings — several large funds materially increased OMC positions during the quarter, which can support the stock and amplify a rally. Article Title
• Neutral Sentiment: Market context: rotation toward high‑yield, cash‑rich dividend payers is boosting demand for names like Omnicom, as covered in recent pieces on dividend-focused strategies. Article Title
• Negative Sentiment: Q4 results missed consensus on EPS ($2.59 vs. ~$2.94 est.) and headline net income was hurt by merger/one‑time costs — these reported misses and the accounting loss explain caution among some investors. Article Title

Omnicom Group declared that its board has authorized a stock buyback plan on Wednesday, February 18th that authorizes the company to buyback $5.00 billion in shares. This buyback authorization authorizes the business services provider to purchase up to 38.1% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

Institutional Trading of Omnicom Group

Several institutional investors have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC grew its holdings in Omnicom Group by 8.2% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 10,381 shares of the business services provider’s stock worth $766,000 after acquiring an additional 791 shares in the last quarter. Nordea Investment Management AB increased its holdings in shares of Omnicom Group by 7.7% in the second quarter. Nordea Investment Management AB now owns 17,118 shares of the business services provider’s stock valued at $1,226,000 after purchasing an additional 1,227 shares during the period. Brookstone Capital Management boosted its holdings in Omnicom Group by 23.7% in the second quarter. Brookstone Capital Management now owns 3,623 shares of the business services provider’s stock valued at $261,000 after purchasing an additional 694 shares during the last quarter. Carnegie Investment Counsel grew its position in Omnicom Group by 1.0% during the 2nd quarter. Carnegie Investment Counsel now owns 21,835 shares of the business services provider’s stock worth $1,571,000 after purchasing an additional 207 shares during the period. Finally, Asset Management One Co. Ltd. boosted its position in Omnicom Group by 3.5% in the 2nd quarter. Asset Management One Co. Ltd. now owns 84,329 shares of the business services provider’s stock worth $6,067,000 after purchasing an additional 2,855 shares in the last quarter. Institutional investors 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.