The Vanguard Group, Inc. recently announced the acquisition of new stake in Omnicom Group Inc. (NYSE:OMC). The institutional investor has increased its shareholding in the Communication Services company by 0.91% to 25.18 million shares with purchase of 0.23 million shares. This fresh investment now brings its stake to 11.75% valued currently at $1.37 billion. In addition, BlackRock Fund Advisors raised its holdings by 0.1 million to 12.97 million shares. And SSgA Funds Management, Inc. has lifted its position by 6.50% or 0.75 million shares – to 12.22 million shares.
With over 2.51 million Omnicom Group Inc. (OMC) shares trading Thursday and a closing price of $53.26 on the day, the dollar volume was approximately $133.51 million. The shares have shown a negative weekly performance of -5.45% and its price on 07/30/20 lost nearly -1.41%. Currently, there are 216.60M common shares owned by the public and among those 212.50M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for OMC have a consensus price objective of $58.73. The analysts have set the share’s price value over the next 12 months at a high of $78.00 and a low of $45.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Omnicom Group Inc. stock is 3.20 for the next 12 months. The average price target is 6.64% above its last price level and an upside to the estimated low will see the stock lose -18.36% over that period. But an upside of 31.72% will see the stock hit the forecast high price target while mean target price for the stock is $59.00.
Insiders at the company have transacted a total of 57 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 44 of these insider trades were purchases, accounting for 274,253 shares. Insider sales of the common stock occurred on 13 occasions, with total insider shares sold totaling 89,398 shares.
The top 3 mutual fund holders in Omnicom Group Inc. are Vanguard Total Stock Market Index, Vanguard Mid Cap Index Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 6.12 million shares of the company’s stock, all valued at over $333.99 million. The company sold -0.17 million shares recently to bring their total holdings to about 2.86% of the shares outstanding. Vanguard Mid Cap Index Fund sold -0.38 million shares to see its total holdings shrink to 5.3 million shares valued at over $289.37 million and representing 2.47% of the shares outstanding. Vanguard 500 Index Fund bought 915.0 shares to bring its total holdings to over 4.45 million shares at a value of $242.85 million. Vanguard 500 Index Fund now owns shares totaling to 2.08% of the shares outstanding.
Shares of Omnicom Group Inc. (NYSE: OMC) opened at $53.39, down -$0.63 from a prior closing price of $54.02. However, the script later closed the day at $53.26, down -1.41%. The company’s stock has a 5-day price change of -5.45% and -6.61% over the past three months. OMC shares are trading -34.26% year to date (YTD), with the 12-month market performance down to -33.61% lower. It has a 12-month low price of $46.37 and touched a high of $82.73 over the same period. Currently, 2.51 million shares have been traded, compared to an average intraday trading volume of 2.73 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.06%, -3.45%, and -19.66% respectively.
Institutional ownership of Omnicom Group Inc. (NYSE: OMC) 216.60M shares outstanding. Mutual fund holders own 48.46%, while other institutional holders and individual stakeholders account for 53.95% and 1.89% respectively.
It has a market capitalization of $11.37B and a beta (3y monthly) value of 0.74. The stock’s trailing 12-month PE ratio is 8.76, while the earnings-per-share (ttm) stands at $6.08. The company has a PEG of 6.25 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 2.09. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.64% over the week and 3.33% over the month.
Analysts forecast that Omnicom Group Inc. (OMC) will achieve an EPS of $1.04 for the current quarter, $1.63 for the next quarter and $5.44 for 2021. The lowest estimate earnings-per-share for the quarter is $0.79 while analysts give the company a high EPS estimate of $1.35. Comparatively, EPS for the current quarter was $1.32 a year ago. Earnings per share for the fiscal year are expected to increase by 1.80%, and 19.20% over the next financial year. EPS should shrink at an annualized rate of 1.40% over the next five years, compared to 7.00% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Omnicom Group Inc. (OMC) as a “Hold” at a consensus score of 3.20. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 7 of the 14 advise that investors “hold,” and 3 rated it as a “Sell.”
Looking at the support for the OMC, a number of firms have released research notes about the stock. Citigroup stated their Buy rating for the stock in a research note on March 24, 2020, with the firm’s price target at $86-$60. CFRA coverage for the Omnicom Group Inc. (OMC) stock in a research note released on February 12, 2020 offered a Hold rating with a price target of. Wells Fargo was of a view on September 24, 2019 that the stock is Market Perform, while BMO Capital Markets gave the stock Market Perform rating on July 15, 2019, issuing a price target of $86. Barclays on their part issued Equal Weight rating on April 17, 2019.