Stagwell (NASDAQ:STGW) Stock Dropped to "Buy" by Wall Street Zen

Key Points

• Wall Street Zen downgraded Stagwell from “strong buy” to “buy,” though the broader analyst consensus remains “Moderate Buy,” with five buy ratings, two holds, and a $9.60 average price target.
• Stagwell reported quarterly EPS of $0.25, beating estimates of $0.19, while revenue reached $786.31 million and increased 11.2% year over year.
• The stock opened at $8.36, compared with a 12-month range of $4.28 to $9.55; an insider also sold 62,000 shares for approximately $524,520, while institutional investors own 35.61% of the company.

Stagwell (NASDAQ:STGW - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Sunday, Wall Street Zen reports.

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

Stagwell Price Performance

STGW opened at $8.36 on Friday. The stock has a fifty day simple moving average of $8.63 and a two-hundred day simple moving average of $7.40. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 2.11. Stagwell has a 12-month low of $4.28 and a 12-month high of $9.55. The company has a market cap of $2.04 billion, a price-to-earnings ratio of 139.33 and a beta of 1.30.

Stagwell (NASDAQ:STGW - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.25 EPS for the quarter, topping analysts' consensus estimates 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 revenue was up 11.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.17 EPS. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. Research analysts predict that Stagwell will post 0.92 earnings per share for the current fiscal year.

Insider Activity at Stagwell

In other news, insider Frank Lanuto sold 62,000 shares of the business's stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $8.46, for a total value of $524,520.00. Following the sale, the insider directly owned 491,977 shares in the company, valued at $4,162,125.42. The trade was a 11.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 11.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Stagwell

Several large investors have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC bought a new stake in shares of Stagwell in the 2nd quarter valued at approximately $52,000. Tidal Investments LLC purchased a new stake in Stagwell during the 2nd quarter valued at $117,000. Pictet Asset Management Holding SA raised its holdings in Stagwell by 34.7% during the 1st quarter. Pictet Asset Management Holding SA now owns 20,014 shares of the company's stock valued at $126,000 after buying an additional 5,155 shares during the period. Headlands Technologies LLC bought a new stake in Stagwell in the second quarter worth $141,000. Finally, Corient Private Wealth LP bought a new stake in Stagwell in the second quarter worth $238,000. 35.61% of the stock is owned by institutional investors.

Stagwell Company Profile

Stagwell Inc NASDAQ: STGW is a global marketing and communications network that provides services to businesses, government organizations and other institutions. The company combines creative, media, digital transformation, public relations, strategic consulting, consumer insights and data-driven marketing capabilities through a network of specialized agencies.

Its services include brand strategy and development, advertising, media planning and buying, public affairs, corporate communications, public relations, social media, technology consulting, website and product design, customer experience and analytics.

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