Compass Capital Management Inc. Makes New Investment in Omnicom Group Inc. $OMC

Compass Capital Management Inc. acquired a new stake in Omnicom Group Inc. (NYSE:OMC) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 10,806 shares of the business services provider’s stock, valued at approximately $787,000.

Other hedge funds have also modified their holdings of the company. Berger Financial Group Inc purchased a new stake in shares of Omnicom Group during the 4th quarter valued at $5,564,000. Resona Asset Management Co. Ltd. grew its stake in Omnicom Group by 55.4% during the 4th quarter. Resona Asset Management Co. Ltd. now owns 98,842 shares of the business services provider’s stock worth $7,976,000 after buying an additional 35,247 shares during the last quarter. Generali Asset Management SPA SGR raised its stake in Omnicom Group by 346.0% in the fourth quarter. Generali Asset Management SPA SGR now owns 20,580 shares of the business services provider’s stock valued at $1,662,000 after buying an additional 15,966 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in Omnicom Group by 70.0% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 674,065 shares of the business services provider’s stock valued at $54,815,000 after buying an additional 277,665 shares during the last quarter. Finally, Swiss Life Asset Management Ltd boosted its holdings in Omnicom Group by 901.4% in the fourth quarter. Swiss Life Asset Management Ltd now owns 481,765 shares of the business services provider’s stock worth $38,903,000 after acquiring an additional 433,654 shares in the last quarter. 91.97% of the stock is owned by hedge funds and other institutional investors.

Omnicom Group Price Performance

Shares of NYSE OMC opened at $87.45 on Monday. The company has a debt-to-equity ratio of 0.97, a current ratio of 0.92 and a quick ratio of 0.78. The stock has a market capitalization of $23.99 billion, a price-to-earnings ratio of 75.39, a PEG ratio of 0.58 and a beta of 0.64. The firm’s 50 day simple moving average is $79.20 and its 200-day simple moving average is $77.22. Omnicom Group Inc. has a 12 month low of $66.33 and a 12 month high of $88.55.

Omnicom Group (NYSE:OMC) last posted its earnings results on Tuesday, July 28th. The business services provider reported $2.65 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.67 by ($0.02). Omnicom Group had a net margin of 1.74% and a return on equity of 24.73%. The firm had revenue of $6.56 billion during the quarter, compared to analyst estimates of $6.44 billion. During the same quarter in the prior year, the firm earned $2.05 earnings per share. The business’s revenue for the quarter was up 63.4% on a year-over-year basis. Analysts expect that Omnicom Group Inc. will post 10.35 EPS for the current year.

Omnicom Group Announces Dividend

The company also recently disclosed 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. The ex-dividend date is Friday, September 18th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.7%. Omnicom Group’s dividend payout ratio is 275.86%.

Wall Street Analyst Weigh In

Several research firms have weighed in on OMC. Weiss Ratings raised shares of Omnicom Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 30th. Zacks Research cut Omnicom Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, July 30th. Rothschild & Co Redburn began coverage on Omnicom Group in a report on Thursday, May 28th. They issued a “neutral” rating and a $89.00 price objective on the stock. Wells Fargo & Company raised their price objective on Omnicom Group from $91.00 to $93.00 and gave the stock an “overweight” rating in a research note on Thursday, July 30th. Finally, Morgan Stanley lifted their price objective on shares of Omnicom Group from $82.00 to $83.00 and gave the company an “equal weight” rating in a research note on Friday, May 1st. Four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $99.00.

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.