Omnicom Group (NYSE:OMC) Shares Gap Up Following Dividend Announcement

Shares of Omnicom Group Inc. (NYSE:OMC) gapped up prior to trading on Thursday after the company announced a dividend. The stock had previously closed at $70.16, but opened at $74.48. Omnicom Group shares last traded at $78.9630, with a volume of 2,508,331 shares traded.

The newly announced dividend which will be paid on Thursday, April 9th. Shareholders of record on Wednesday, March 11th will be paid a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a yield of 3.8%. The ex-dividend date is Wednesday, March 11th. Omnicom Group’s dividend payout ratio is currently 47.27%.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Bank of America reiterated an “underperform” rating and issued a $77.00 price target (down previously from $87.00) on shares of Omnicom Group in a report on Monday, January 5th. Citigroup lifted their target price on shares of Omnicom Group from $103.00 to $115.00 and gave the stock a “buy” rating in a report on Friday. Morgan Stanley initiated coverage on Omnicom Group in a research report on Tuesday, December 16th. They set an “equal weight” rating and a $88.00 target price for the company. Finally, UBS Group upped their price objective on shares of Omnicom Group from $99.00 to $108.00 and gave the company a “buy” rating in a research report on Friday, December 5th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $93.86.

Omnicom Group Stock Up 2.8%

The firm’s 50-day simple moving average is $77.10 and its 200 day simple moving average is $76.37. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.80 and a current ratio of 0.92. The stock has a market capitalization of $16.06 billion, a P/E ratio of 169.80, a PEG ratio of 1.22 and a beta of 0.74.

Omnicom Group (NYSE:OMC) last posted its quarterly earnings results on Wednesday, February 18th. The business services provider reported $2.59 earnings per share for the quarter, missing analysts’ consensus estimates of $2.94 by ($0.35). Omnicom Group had a negative net margin of 0.32% and a positive return on equity of 35.41%. The company had revenue of $5.53 billion during the quarter, compared to the consensus estimate of $7.58 billion. During the same quarter in the prior year, the business earned $2.41 earnings per share. The firm’s revenue for the quarter was up 27.9% compared to the same quarter last year. As a group, research analysts expect that Omnicom Group Inc. will post 8.25 EPS for the current year.

Trending Headlines about Omnicom Group

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

• Positive Sentiment: Board-authorized $5.0 billion share repurchase program (includes a $2.5B accelerated repurchase) — large buyback signals management thinks shares are undervalued and directly reduces float, supporting the stock. Article Title
• Positive Sentiment: Quarterly dividend declared: $0.80 per share (record March 11; payable April 9), boosting yield and making OMC more attractive to income investors. Article Title
• Positive Sentiment: Analyst upgrade/target lift — Citi raised its price target to $115 and reaffirmed a Buy, implying meaningful upside versus recent levels and providing fresh analyst support. Article Title
• Positive Sentiment: Management highlighted post‑merger integration progress (raised cost‑synergy targets) and scheduled an Investor Day (March 12), which together suggest clearer visibility on cost savings and strategy that could boost margins long term. Article Title
• Positive Sentiment: Heavy institutional buying reported in recent filings — several large funds materially increased OMC positions during the quarter, which can support the stock and amplify a rally. Article Title
• Neutral Sentiment: Market context: rotation toward high‑yield, cash‑rich dividend payers is boosting demand for names like Omnicom, as covered in recent pieces on dividend-focused strategies. Article Title
• Negative Sentiment: Q4 results missed consensus on EPS ($2.59 vs. ~$2.94 est.) and headline net income was hurt by merger/one‑time costs — these reported misses and the accounting loss explain caution among some investors. Article Title

Omnicom Group declared that its board has authorized a share repurchase program on Wednesday, February 18th that allows the company to buyback $5.00 billion in outstanding shares. This buyback authorization allows the business services provider to repurchase up to 38.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Activest Wealth Management increased its position in Omnicom Group by 2,960.0% during the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider’s stock worth $25,000 after buying an additional 296 shares during the period. Bayforest Capital Ltd acquired a new position in Omnicom Group during the fourth quarter valued at approximately $26,000. Elyxium Wealth LLC bought a new stake in shares of Omnicom Group during the 4th quarter worth $26,000. Cornerstone Planning Group LLC lifted its holdings in shares of Omnicom Group by 2,126.7% in the third quarter. Cornerstone Planning Group LLC now owns 334 shares of the business services provider’s stock worth $27,000 after acquiring an additional 319 shares during the last quarter. Finally, Legacy Wealth Managment LLC ID lifted its stake in Omnicom Group by 111.4% in the 4th quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider’s stock valued at $27,000 after purchasing an additional 176 shares during the last quarter. 91.97% of the stock is owned by institutional investors.

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.