Omnicom Group (NYSE:OMC) to Buyback $5.00 billion in Stock

Omnicom Group (NYSE:OMC) announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 18th, RTT News reports. The company plans to buyback $5.00 billion in outstanding shares. This buyback authorization permits the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

Several analysts have recently commented on OMC shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Barclays increased their price objective on Omnicom Group from $80.00 to $82.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 23rd. Morgan Stanley started coverage on Omnicom Group in a research report on Tuesday, December 16th. They set an “equal weight” rating and a $88.00 price objective for the company. Bank of America reiterated an “underperform” rating and issued a $77.00 target price (down previously from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Finally, UBS Group increased their price target 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. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Omnicom Group presently has a consensus rating of “Hold” and an average price target of $92.14.

Omnicom Group Stock Up 3.3%

NYSE OMC traded up $2.21 on Wednesday, reaching $70.19. The stock had a trading volume of 6,430,113 shares, compared to its average volume of 4,362,979. The company has a current ratio of 0.92, a quick ratio of 0.80 and a debt-to-equity ratio of 0.95. Omnicom Group has a 1 year low of $66.33 and a 1 year high of $89.27. The business has a 50 day moving average price of $77.02 and a 200 day moving average price of $76.26. The company has a market capitalization of $13.55 billion, a price-to-earnings ratio of 10.37, a P/E/G ratio of 1.05 and a beta of 0.74.

Omnicom Group (NYSE:OMC) last announced its quarterly earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.94 by ($0.35). Omnicom Group had a net margin of 8.31% and a return on equity of 33.30%. The firm had revenue of $5.53 billion for the quarter, compared to analyst estimates of $7.58 billion. During the same quarter in the prior year, the firm earned $2.41 earnings per share. The firm’s quarterly revenue was up 27.9% compared to the same quarter last year. On average, analysts forecast that Omnicom Group will post 8.25 EPS for the current fiscal year.

Omnicom Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, January 9th. Stockholders of record on Friday, December 19th were issued a dividend of $0.80 per share. The ex-dividend date was Friday, December 19th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 4.6%. This is an increase from Omnicom Group’s previous quarterly dividend of $0.70. Omnicom Group’s payout ratio is 47.27%.

Omnicom Group News Summary

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

• Positive Sentiment: Board approved a $5.0 billion share repurchase program and executed $2.5 billion of accelerated share repurchases (ASRs), which increases near‑term buyback support for the stock. Omnicom Announces $5 Billion Repurchase Program
• Positive Sentiment: Large institutional buying in Q4 (major additions from Vanguard, BlackRock, State Street and others) suggests strong institutional conviction behind the stock. QuiverQuant Institutional Activity
• Positive Sentiment: Strategic/operational highlights: Omnicom’s AI initiatives (Omni platform) and recent recognition as a Forrester leader are being cited as growth drivers and support longer‑term revenue/efficiency upside. Yahoo — Forrester & AI Highlights
• Neutral Sentiment: Omnicom reported Q4 revenue of about $5.5B and EPS of $2.59 (company slides and press release available); the company also provided a slide deck and commentary on integration progress. Investors should review the release for GAAP vs. adjusted detail. Q4 Press Release / Slide Deck
• Neutral Sentiment: Company commentary emphasizes integration progress across recent acquisitions and Omni+ tech investments — a longer‑term positive but not an immediate earnings fix. TipRanks — Integration Progress
• Negative Sentiment: Zacks notes the quarter missed consensus on EPS (reported $2.59 vs. Zacks estimate $2.94), which can pressure near‑term analyst expectations and sentiment. Zacks — EPS Miss
• Negative Sentiment: GAAP and some adjusted metrics from third‑party reports show a Q4 net loss (roughly $0.9B) and material adjusted operating/loss figures — these accounting items and mixed earnings metrics create short‑term uncertainty until management clarifies drivers. QuiverQuant — Q4 Financial Details

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.