Omnicom Group (NYSE:OMC) Hits New 12-Month High After Dividend Announcement

Omnicom Group Inc. (NYSE:OMC) reached a new 52-week high during mid-day trading on Tuesday after the company announced a dividend. The company traded as high as $84.23 and last traded at $83.55, with a volume of 1339306 shares trading hands. The stock had previously closed at $83.53.

The newly announced dividend which will be paid on Friday, July 9th. Shareholders of record on Friday, June 11th will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 3.35%. Omnicom Group’s payout ratio is currently 46.20%.

A number of brokerages have issued reports on OMC. Wells Fargo & Company lifted their target price on shares of Omnicom Group from $75.00 to $85.00 and gave the stock an “equal weight” rating in a research report on Wednesday, April 21st. Macquarie raised shares of Omnicom Group from a “neutral” rating to an “outperform” rating and boosted their price objective for the company from $76.00 to $93.00 in a research report on Monday. BMO Capital Markets boosted their price objective on shares of Omnicom Group from $68.00 to $80.00 and gave the company a “market perform” rating in a research report on Thursday, April 22nd. Finally, Zacks Investment Research raised shares of Omnicom Group from a “hold” rating to a “buy” rating and set a $86.00 price objective for the company in a research report on Wednesday, April 28th. Five analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Omnicom Group presently has an average rating of “Buy” and a consensus target price of $75.50.

The business’s fifty day moving average is $78.23 and its 200-day moving average is $66.43. The stock has a market capitalization of $17.97 billion, a PE ratio of 18.90, a P/E/G ratio of 2.58 and a beta of 0.87. The company has a quick ratio of 0.88, a current ratio of 0.98 and a debt-to-equity ratio of 1.85.

Omnicom Group (NYSE:OMC) last released its earnings results on Monday, April 19th. The business services provider reported $1.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.13 by $0.20. Omnicom Group had a net margin of 7.10% and a return on equity of 36.90%. The firm had revenue of $3.43 billion during the quarter, compared to the consensus estimate of $3.30 billion. During the same period in the previous year, the firm earned $1.19 earnings per share. Omnicom Group’s revenue was up .6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Omnicom Group Inc. will post 4.63 EPS for the current fiscal year.

In related news, CEO John Wren sold 81,062 shares of the business’s stock in a transaction that occurred on Monday, April 26th. The shares were sold at an average price of $80.68, for a total value of $6,540,082.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.10% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Charles Schwab Investment Management Inc. grew its stake in Omnicom Group by 3.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 6,794,726 shares of the business services provider’s stock worth $423,789,000 after buying an additional 205,342 shares during the period. Beutel Goodman & Co Ltd. grew its stake in Omnicom Group by 5.9% during the fourth quarter. Beutel Goodman & Co Ltd. now owns 4,188,232 shares of the business services provider’s stock worth $261,220,000 after buying an additional 232,291 shares during the period. Amundi Pioneer Asset Management Inc. grew its stake in Omnicom Group by 24.5% during the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 2,972,175 shares of the business services provider’s stock worth $185,301,000 after buying an additional 584,810 shares during the period. Lazard Asset Management LLC grew its stake in Omnicom Group by 64.7% during the fourth quarter. Lazard Asset Management LLC now owns 2,078,171 shares of the business services provider’s stock worth $129,615,000 after buying an additional 816,725 shares during the period. Finally, Dimensional Fund Advisors LP grew its stake in Omnicom Group by 8.3% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,661,092 shares of the business services provider’s stock worth $103,597,000 after buying an additional 127,796 shares during the period. Institutional investors own 92.76% of the company’s stock.

Omnicom Group Company Profile (NYSE:OMC)

Omnicom Group Inc, together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, entertainment marketing, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services.

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