Stagwell (NASDAQ:STGW) Stock Rating Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Stagwell from “strong buy” to “buy,” although the broader analyst consensus remains “Moderate Buy,” with an average price target of $10.17.
• Stagwell reported quarterly results above expectations, delivering $0.25 in earnings per share versus the $0.19 estimate and revenue of $786.31 million, up 11.2% year over year.
• Shares opened at $8.98, near their 52-week high of $9.64; institutional investors own 35.61% of the stock, while an insider recently sold 62,000 shares.

Stagwell (NASDAQ:STGW - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Sunday, Wall Street Zen reports.

A number of other research analysts have also recently commented on STGW. Wells Fargo & Company raised their price target on shares of Stagwell from $8.00 to $10.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Needham & Company LLC boosted their price objective 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. Rosenblatt Securities boosted their price objective on shares of Stagwell from $9.00 to $10.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. B. Riley Financial upped their target price on shares of Stagwell from $8.00 to $10.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Finally, The Goldman Sachs Group began coverage on shares of Stagwell in a research report on Monday, October 5th. They set a "buy" rating and a $13.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $10.17.

Stagwell Price Performance

STGW opened at $8.98 on Friday. The business has a fifty day moving average of $8.65 and a 200 day moving average of $7.68. Stagwell has a 52-week low of $4.28 and a 52-week high of $9.64. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 2.11. The stock has a market cap of $2.20 billion, a P/E ratio of 149.67 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 earnings per share for the quarter, topping analysts' consensus estimates of $0.19 by $0.06. Stagwell had a return on equity of 27.30% and a net margin of 0.53%. The business had revenue of $786.31 million for the quarter, compared to analyst estimates of $754.56 million. During the same quarter last year, the firm posted $0.17 earnings per share. The business's revenue was up 11.2% compared to the same quarter last year. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. As a group, sell-side analysts anticipate that Stagwell will post 0.92 EPS for the current year.

Insider Activity

In other news, insider Frank Lanuto sold 62,000 shares of the stock in a transaction on Friday, July 31st. The stock was sold at an average price of $8.46, for a total transaction of $524,520.00. Following the transaction, the insider owned 491,977 shares of the company's stock, valued at approximately $4,162,125.42. This represents a 11.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 11.20% of the company's stock.

Institutional Trading of Stagwell

A number of hedge funds have recently added to or reduced their stakes in STGW. Dimensional Fund Advisors LP boosted its stake in shares of Stagwell by 22.5% during the first quarter. Dimensional Fund Advisors LP now owns 5,035,320 shares of the company's stock valued at $31,671,000 after purchasing an additional 923,771 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in Stagwell during the second quarter valued at approximately $3,907,000. Empowered Funds LLC purchased a new position in Stagwell during the first quarter valued at approximately $2,862,000. First Trust Advisors LP increased its holdings in Stagwell by 53.0% during the first quarter. First Trust Advisors LP now owns 673,642 shares of the company's stock valued at $4,237,000 after buying an additional 233,489 shares during the period. Finally, Sei Investments Co. raised its stake in Stagwell by 104.2% in the first quarter. Sei Investments Co. now owns 371,788 shares of the company's stock worth $2,339,000 after buying an additional 189,751 shares in the last quarter. 35.61% of the stock is owned by hedge funds and other institutional investors.

About Stagwell

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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