Stagwell (NASDAQ:STGW) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Stagwell to “strong-buy” from “buy.” The broader analyst consensus is “Moderate Buy,” with five Buy ratings, two Holds, and an average price target of $9.60.
• Stagwell reported quarterly EPS of $0.25, beating expectations of $0.19, while revenue reached $786.31 million, up 11.2% year over year and above estimates.
• The stock recently traded at $8.74, near its 52-week high of $9.55. Institutional ownership stands at 35.61%, though insider Frank P. Lanuto sold 62,000 shares at an average price of $8.46.

Stagwell (NASDAQ:STGW - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research report issued on Saturday.

Other equities research analysts have also recently issued reports about the stock. Needham & Company LLC lifted their price target on shares of Stagwell from $8.00 to $10.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Weiss Ratings raised Stagwell from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, August 13th. Wells Fargo & Company upped their target price on Stagwell from $8.00 to $10.00 and gave the company an "overweight" rating in a report on Friday, July 31st. B. Riley Financial boosted their target price on shares of Stagwell from $8.00 to $10.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Finally, Rosenblatt Securities raised their price objective on Stagwell from $9.00 to $10.00 and gave the stock a "buy" rating in a research note on Tuesday, August 4th. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $9.60.

Stagwell Price Performance

Shares of NASDAQ:STGW traded down $0.14 during trading on Friday, reaching $8.74. The stock had a trading volume of 755,411 shares, compared to its average volume of 1,564,154. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.81 and a current ratio of 0.81. Stagwell has a 1-year low of $4.28 and a 1-year high of $9.55. The stock has a market cap of $2.14 billion, a PE ratio of 145.67 and a beta of 1.25. The business has a fifty day moving average price of $8.07 and a 200-day moving average price of $6.81.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.06. The company had revenue of $786.31 million for the quarter, compared to analysts' expectations of $754.56 million. Stagwell had a net margin of 0.53% and a return on equity of 27.30%. The firm's quarterly revenue was up 11.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.17 EPS. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. On average, equities analysts forecast that Stagwell will post 0.92 earnings per share for the current fiscal year.

Insider Buying and Selling at Stagwell

In related news, insider Frank P. Lanuto sold 62,000 shares of the company's stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $8.46, for a total value of $524,520.00. Following the transaction, the insider owned 491,977 shares in the company, valued at approximately $4,162,125.42. This represents a 11.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 11.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Sei Investments Co. lifted its holdings in shares of Stagwell by 104.2% during the first quarter. Sei Investments Co. now owns 371,788 shares of the company's stock valued at $2,339,000 after purchasing an additional 189,751 shares during the last quarter. First Trust Advisors LP increased its holdings in Stagwell by 53.0% in the 1st quarter. First Trust Advisors LP now owns 673,642 shares of the company's stock worth $4,237,000 after buying an additional 233,489 shares in the last quarter. Empowered Funds LLC bought a new position in Stagwell during the first quarter valued at approximately $2,862,000. Kestra Private Wealth Services LLC purchased a new stake in Stagwell in the first quarter worth approximately $846,000. Finally, AdvisorShares Investments LLC purchased a new position in shares of Stagwell in the 4th quarter worth $478,000. Hedge funds and other institutional investors own 35.61% of the company's stock.

About Stagwell

Stagwell Inc is a modern marketing and communications network that partners with global organizations to drive brand growth through data-driven insights and creative solutions. The company operates a diversified portfolio of specialized agencies and technology platforms, offering services that span digital marketing, advertising, public relations, consumer and market research, social media strategy, and commerce consulting. By integrating research, creative, media, and technology under a unified network, Stagwell aims to deliver end-to-end marketing solutions tailored to the evolving needs of clients in sectors such as technology, healthcare, consumer goods, and financial services.

Founded in 2015 by long-time political strategist and pollster Mark Penn, Stagwell has expanded organically and through strategic acquisitions to build capabilities across the marketing value chain.

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