Stagwell (NASDAQ:STGW) Earns "Buy" Rating from B. Riley Financial

Key Points

• B. Riley Financial reaffirmed its “Buy” rating on Stagwell and raised its price target from $10 to $12, implying 18.87% potential upside. Analysts overall rate the stock “Moderate Buy,” with an average target of $10.83.
• Stagwell reported quarterly EPS of $0.34, beating the $0.31 consensus and rising from $0.24 a year earlier, while revenue increased 9.8% to $816.03 million but missed estimates.
• Shares rose 1.5% to $10.10, near their 52-week high; institutional investors and hedge funds own approximately 35.61% of the company.

Stagwell (NASDAQ:STGW - Get Free Report)'s stock had its "buy" rating restated by equities researchers at B. Riley Financial in a research note issued on Friday, Benzinga reports. They currently have a $12.00 price target on the stock, up from their prior price target of $10.00. B. Riley Financial's price objective points to a potential upside of 18.87% from the stock's current price.

Several other research firms have also recently weighed in on STGW. Wall Street Zen cut Stagwell from a "strong-buy" rating to a "buy" rating in a report on Sunday, October 25th. Rosenblatt Securities upped their price target on shares of Stagwell from $9.00 to $10.00 and gave the company a "buy" rating in a report on Tuesday, August 4th. Weiss Ratings raised shares of Stagwell from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, October 8th. Needham & Company LLC raised their price objective on shares of Stagwell from $10.00 to $12.00 and gave the stock a "buy" rating in a report on Friday. Finally, The Goldman Sachs Group started coverage on shares of Stagwell in a research report on Monday, October 5th. They issued a "buy" rating and a $13.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Stagwell presently has a consensus rating of "Moderate Buy" and an average target price of $10.83.

Stagwell Trading Up 1.5%

STGW traded up $0.14 during mid-day trading on Friday, hitting $10.10. The stock had a trading volume of 334,819 shares, compared to its average volume of 1,608,065. The stock's fifty day simple moving average is $8.68 and its 200-day simple moving average is $7.15. The firm has a market capitalization of $2.47 billion, a price-to-earnings ratio of 170.25 and a beta of 1.30. Stagwell has a 1-year low of $4.28 and a 1-year high of $10.10. The company has a debt-to-equity ratio of 2.11, a current ratio of 0.81 and a quick ratio of 0.81.

Stagwell (NASDAQ:STGW - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.31 by $0.03. The business had revenue of $816.03 million for the quarter, compared to the consensus estimate of $838.38 million. Stagwell had a return on equity of 27.30% and a net margin of 0.53%. The firm's revenue was up 9.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.24 EPS. As a group, research analysts forecast that Stagwell will post 0.92 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Integrated Wealth Concepts LLC bought a new stake in Stagwell during the second quarter worth $52,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Stagwell in the third quarter valued at approximately $87,000. Tidal Investments LLC bought a new position in shares of Stagwell during the 2nd quarter worth approximately $117,000. Headlands Technologies LLC bought a new stake in Stagwell in the 2nd quarter valued at $141,000. Finally, Pictet Asset Management Holding SA increased its holdings in shares of Stagwell by 34.7% in the first quarter. Pictet Asset Management Holding SA now owns 20,014 shares of the company's stock valued at $126,000 after purchasing an additional 5,155 shares during the last quarter. 35.61% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Stagwell

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Adjusted EPS beat expectations: Stagwell reported third-quarter adjusted earnings of $0.34 per share, above the $0.31 consensus estimate and up from $0.24 a year earlier. Stagwell Q3 Earnings Top Estimates
• Positive Sentiment: Guidance was raised: The company increased its 2026 adjusted EPS outlook to $1.07-$1.21, signaling improved confidence in profitability. Stagwell also set a target of $150 million in enterprise technology bookings for 2027, supported by growth in its Marketing Cloud business. Stagwell Raises Guidance and Targets Enterprise Tech Bookings
• Positive Sentiment: Analyst support increased: Needham raised its price target from $10 to $12 and upgraded Stagwell to “Buy,” implying additional upside based on the reported reference price.
• Neutral Sentiment: Strategic technology investment: Stagwell is unifying the employee experience across more than 70 agencies on the ServiceNow AI Platform. The move may improve operating efficiency and integration, but its near-term financial impact was not disclosed. Stagwell Unifies Employee Experience on ServiceNow AI Platform
• Negative Sentiment: Revenue missed estimates: Third-quarter revenue rose 9.8% year over year to $816.0 million, but fell short of the $838.4 million analyst consensus. With a low net margin and debt-to-equity ratio above 2, investors may remain focused on whether the earnings improvement can translate into stronger sales and cash flow.

Stagwell Company Profile

Stagwell Inc is a global marketing and communications services company that helps brands, organizations and institutions develop strategies, engage audiences and manage their reputations. Its services include advertising, media, public relations, digital marketing, consumer insights, creative development and marketing technology.

The company operates through a network of agencies and specialized businesses serving clients across North America, Europe, Asia-Pacific and other international markets.

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