Traders Buy Omnicom Group (OMC) on Weakness Following Insider Selling
Investors purchased shares of Omnicom Group Inc. (NYSE:OMC) on weakness during trading hours on Tuesday following insider selling activity. $53.36 million flowed into the stock on the tick-up and $38.04 million flowed out of the stock on the tick-down, for a money net flow of $15.32 million into the stock. Of all equities tracked, Omnicom Group had the 22nd highest net in-flow for the day. Omnicom Group traded down ($1.24) for the day and closed at $80.55Specifically, CEO Jonathan B. Nelson sold 4,916 shares of the company’s stock in a transaction that occurred on Thursday, April 18th. The shares were sold at an average price of $84.22, for a total transaction of $414,025.52. Following the transaction, the chief executive officer now directly owns 83,858 shares in the company, valued at $7,062,520.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Linda Johnson Rice sold 495 shares of the company’s stock in a transaction that occurred on Thursday, February 14th. The stock was sold at an average price of $74.79, for a total transaction of $37,021.05. The disclosure for this sale can be found here. Insiders have sold 8,464 shares of company stock worth $684,930 over the last ninety days. Insiders own 1.20% of the company’s stock.
A number of brokerages have recently issued reports on OMC. Zacks Investment Research upgraded shares of Omnicom Group from a “hold” rating to a “buy” rating and set a $86.00 target price on the stock in a research report on Friday, January 25th. Barclays upgraded shares of Omnicom Group from an “underweight” rating to an “equal weight” rating and upped their target price for the stock from $76.00 to $84.00 in a research report on Wednesday, April 17th. BMO Capital Markets upped their target price on shares of Omnicom Group from $85.00 to $88.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 17th. Citigroup upped their target price on shares of Omnicom Group from $82.00 to $83.00 and gave the stock a “neutral” rating in a research report on Thursday, February 14th. Finally, Macquarie set a $76.00 target price on shares of Omnicom Group and gave the stock a “hold” rating in a research report on Thursday, February 14th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and two have given a buy rating to the company. The company currently has an average rating of “Hold” and an average target price of $76.90.
The firm has a market cap of $18.12 billion, a price-to-earnings ratio of 14.01, a P/E/G ratio of 2.96 and a beta of 0.68. The company has a current ratio of 0.88, a quick ratio of 0.82 and a debt-to-equity ratio of 1.89.
The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, April 9th. Investors of record on Monday, March 11th were issued a $0.65 dividend. This is a positive change from Omnicom Group’s previous quarterly dividend of $0.60. This represents a $2.60 annualized dividend and a yield of 3.23%. The ex-dividend date was Friday, March 8th. Omnicom Group’s dividend payout ratio is currently 45.22%.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Morgan Stanley raised its holdings in Omnicom Group by 209.0% in the third quarter. Morgan Stanley now owns 1,403,684 shares of the business services provider’s stock worth $95,480,000 after purchasing an additional 949,421 shares during the period. Alps Advisors Inc. acquired a new stake in Omnicom Group in the fourth quarter worth $37,806,000. IFM Investors Pty Ltd raised its holdings in Omnicom Group by 10.7% in the first quarter. IFM Investors Pty Ltd now owns 14,522 shares of the business services provider’s stock worth $1,060,000 after purchasing an additional 1,398 shares during the period. Capital Investment Advisors LLC raised its holdings in Omnicom Group by 11.3% in the fourth quarter. Capital Investment Advisors LLC now owns 71,970 shares of the business services provider’s stock worth $5,271,000 after purchasing an additional 7,331 shares during the period. Finally, Acadian Asset Management LLC increased its position in shares of Omnicom Group by 561.7% during the fourth quarter. Acadian Asset Management LLC now owns 26,594 shares of the business services provider’s stock worth $1,948,000 after acquiring an additional 22,575 shares in the last quarter.
About Omnicom Group (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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