Omnicom Group (NYSE:OMC) Sets New 52-Week High – Time to Buy?

Omnicom Group Inc. (NYSE:OMC) shares hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $87.99 and last traded at $88.11, with a volume of 1090555 shares traded. The stock had previously closed at $85.51.

Wall Street Analysts Forecast Growth

OMC has been the subject of a number of analyst reports. Zacks Research lowered shares of Omnicom Group from a “hold” rating to a “strong sell” rating in a research note on Thursday, July 30th. Weiss Ratings raised Omnicom Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 30th. Rothschild & Co Redburn initiated coverage on shares of Omnicom Group in a research note on Thursday, May 28th. They set a “neutral” rating and a $89.00 price target on the stock. Citigroup reduced their price objective on shares of Omnicom Group from $105.00 to $100.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Finally, The Goldman Sachs Group started coverage on shares of Omnicom Group in a report on Wednesday, June 3rd. They issued a “buy” rating and a $146.00 price objective for the company. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Omnicom Group presently has an average rating of “Hold” and an average price target of $99.00.

Omnicom Group Stock Performance

The stock has a market cap of $24.15 billion, a price-to-earnings ratio of 75.86, a PEG ratio of 0.57 and a beta of 0.64. The firm has a fifty day simple moving average of $78.70 and a 200 day simple moving average of $77.11. The company has a current ratio of 0.92, a quick ratio of 0.78 and a debt-to-equity ratio of 0.97.

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 return on equity of 24.73% and a net margin of 1.74%.The business had revenue of $6.56 billion for the quarter, compared to analyst estimates of $6.44 billion. During the same quarter in the prior year, the firm earned $2.05 EPS. The firm’s quarterly revenue was up 63.4% on a year-over-year basis. As a group, sell-side analysts expect that Omnicom Group Inc. will post 10.35 earnings per share for the current year.

Omnicom Group Announces Dividend

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 $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Friday, September 18th. Omnicom Group’s dividend payout ratio is 275.86%.

Institutional Trading of Omnicom Group

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Omnicom Group by 64.2% in the fourth quarter. Vanguard Group Inc. now owns 38,934,118 shares of the business services provider’s stock valued at $3,143,930,000 after buying an additional 15,220,444 shares during the last quarter. BlackRock Inc. acquired a new stake in Omnicom Group during the 2nd quarter worth $2,082,476,000. State Street Corp raised its position in shares of Omnicom Group by 40.4% during the 4th quarter. State Street Corp now owns 23,676,768 shares of the business services provider’s stock valued at $1,933,891,000 after acquiring an additional 6,813,441 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Omnicom Group during the second quarter worth $914,156,000. Finally, Geode Capital Management LLC increased its holdings in Omnicom Group by 57.1% in the fourth quarter. Geode Capital Management LLC now owns 8,578,075 shares of the business services provider’s stock valued at $690,327,000 after purchasing an additional 3,117,188 shares during the last quarter. Institutional investors and hedge funds 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.