Omnicom's revenue jumps 63% as institutions build new stakes
What's the deal? Global Retirement Partners LLCDealroom has a profile for this one. Try Dealroom → bought a new stake in Omnicom GroupDealroom has a profile for this one. Try Dealroom → worth roughly $1,971,000 during the second quarter, according to a Form 13F filing with the Securities and Exchange Commission. The firm picked up 27,059 shares of the advertising and business services company.
Why now? The move followed Omnicom's July 28 earnings report, which showed second-quarter revenue of $6.56 billion — up 63.4% year-over-year and ahead of the $6.44 billion analysts expected.
The numbers: Omnicom reported $2.65 earnings per share, narrowly missing the $2.67 consensus by two cents. It posted a return on equity of 24.73% and a net margin of 1.74%.
The company also declared a quarterly dividend of $0.80, payable October 9 to stockholders of record on September 18. That works out to a $3.20 annualised dividend and a 3.7% yield, though its payout ratio sits at 275.86%.
Who else is buying? Global Retirement Partners was one of several institutions adjusting positions. Sei InvestmentsDealroom has a profile for this one. Try Dealroom → raised its stake 14.1% to 361,266 shares worth $25,990,000, while Gabelli FundsDealroom has a profile for this one. Try Dealroom → and Gamco InvestorsDealroom has a profile for this one. Try Dealroom → opened new positions of about $1,061,000 and $241,000. Institutions and hedge funds own 91.97% of Omnicom's stock.
What could go wrong? Analysts are split. Goldman SachsDealroom has a profile for this one. Try Dealroom → began coverage with a "buy" and a $146 target, but Zacks ResearchDealroom has a profile for this one. Try Dealroom → cut the stock to "strong sell." Shares opened at $87.45 on Monday, near a 52-week high of $88.55, on a price-to-earnings ratio of 75.39.
The signal: Institutional money is accumulating even as valuation and payout metrics run hot — a bet that Omnicom's sharp revenue growth outweighs its earnings miss and stretched dividend coverage.
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