On February 8, 2023, Morgan Stanley upgraded their outlook for Omnicom Group from Underweight to Equal-Weight.

Analyst Price Forecast Suggests 3.74% Downside

As of February 9, 2023, the average one-year price target for Omnicom Group is $87.52. The forecasts range from a low of $64.64 to a high of $114.45. The average price target represents a decrease of 3.74% from its latest reported closing price of $90.92.

The projected annual revenue for Omnicom Group is $14,033MM, a decrease of 1.79%. The projected annual EPS is $6.56, an increase of 2.47%.

Omnicom Group Declares $0.70 Dividend

Omnicom Group said on December 8, 2022 that its board of directors declared a regular quarterly dividend of $0.70 per share ($2.80 annualized). Shareholders of record as of December 20, 2022 received the payment on January 11, 2023. Previously, the company paid $0.70 per share.

At the current share price of $90.92 / share, the stock’s dividend yield is 3.08%. Looking back five years and taking a sample every week, the average dividend yield has been 3.73%, the lowest has been 3.05%, and the highest has been 5.38%. The standard deviation of yields is 0.56 (n=236).

The current dividend yield is 1.17 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.43. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.08%, demonstrating that it has increased its dividend over time.

What are large shareholders doing?

Charles Schwab Investment Management holds 8,037,504 shares representing 3.94% ownership of the company. In it’s prior filing, the firm reported owning 7,641,186 shares, representing an increase of 4.93%. The firm increased its portfolio allocation in OMC by 7.39% over the last quarter.

Wellington Management Group Llp holds 7,529,524 shares representing 3.69% ownership of the company. In it’s prior filing, the firm reported owning 7,606,971 shares, representing a decrease of 1.03%. The firm increased its portfolio allocation in OMC by 3.83% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 6,096,086 shares representing 2.99% ownership of the company. In it’s prior filing, the firm reported owning 6,052,947 shares, representing an increase of 0.71%. The firm increased its portfolio allocation in OMC by 4.12% over the last quarter.

FIL holds 5,845,000 shares representing 2.87% ownership of the company. In it’s prior filing, the firm reported owning 3,981,000 shares, representing an increase of 31.89%. The firm increased its portfolio allocation in OMC by 57.38% over the last quarter.

Bank of New York Mellon holds 4,905,773 shares representing 2.41% ownership of the company. In it’s prior filing, the firm reported owning 4,242,922 shares, representing an increase of 13.51%. The firm decreased its portfolio allocation in OMC by 45.49% over the last quarter.

Fund Sentiment

There are 1560 funds or institutions reporting positions in Omnicom Group. This is a decrease of 14 owner(s) or 0.89%.

Average portfolio weight of all funds dedicated to US:OMC is 0.2512%, an increase of 4.5643%. Total shares owned by institutions decreased in the last three months by 1.09% to 208,517K shares.

Omnicom Group Background Information
(This description is provided by the company.)

Omnicom Public Relations Group is a global collective of three of the top global public relations agencies worldwide and specialist agencies in areas including public affairs, marketing to women, global health strategy and corporate social responsibility. It encompasses more than 6,300 public relations professionals in more than 370 offices worldwide who provide their expertise to companies, government agencies, NGOs and nonprofits across a wide range of industries. Omnicom Public Relations Group delivers for clients through a relentless focus on talent, continuous pursuit of innovation and a culture steeped in collaboration. Omnicom Public Relations Group is part of the DAS Group of Companies, a division of Omnicom Group Inc. that includes more than 200 companies in a wide range of marketing disciplines including advertising, public relations, healthcare, customer relationship management, events, promotional marketing, branding and research.

This article originally appeared on Fintel

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