Wall Street Zen Downgrades Stagwell (NASDAQ:STGW) to Buy

Key Points

• Wall Street Zen downgraded Stagwell from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $9.60.
• Stagwell shares opened at $8.60, near their 52-week high of $9.55. The company’s latest quarterly results beat expectations, reporting $0.25 in EPS versus a $0.19 consensus and revenue of $786.31 million.
• Insider Frank Lanuto sold 62,000 shares for approximately $524,520, reducing his holdings by 11.19%; insiders collectively own 11.20% of Stagwell, while institutional investors own 35.61%.

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

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

Stagwell Trading Up 0.4%

Shares of STGW opened at $8.60 on Friday. Stagwell has a fifty-two week low of $4.28 and a fifty-two week high of $9.55. The business has a 50-day moving average of $8.38 and a 200 day moving average of $7.07. The firm has a market cap of $2.10 billion, a P/E ratio of 143.33 and a beta of 1.22. 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 (NASDAQ:STGW - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.19 by $0.06. The business had revenue of $786.31 million for the quarter, compared to the consensus estimate of $754.56 million. Stagwell had a net margin of 0.53% and a return on equity of 27.30%. The company's revenue was up 11.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.17 earnings per share. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. As a group, research analysts forecast that Stagwell will post 0.92 EPS for the current year.

Insider Buying and Selling

In related news, insider Frank Lanuto sold 62,000 shares of the business's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $8.46, for a total transaction of $524,520.00. Following the completion of the transaction, the insider owned 491,977 shares of the company's stock, valued at approximately $4,162,125.42. The trade was a 11.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 11.20% of the company's stock.

Institutional Trading of Stagwell

Several institutional investors and hedge funds have recently bought and sold shares of STGW. Kestra Advisory Services LLC purchased a new position in shares of Stagwell during the 4th quarter valued at $26,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Stagwell in the second quarter worth $52,000. Clearstead Advisors LLC raised its position in shares of Stagwell by 186.2% in the fourth quarter. Clearstead Advisors LLC now owns 7,020 shares of the company's stock worth $34,000 after buying an additional 4,567 shares in the last quarter. Inceptionr LLC bought a new stake in Stagwell during the fourth quarter valued at $50,000. Finally, Tower Research Capital LLC TRC boosted its stake in Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company's stock valued at $49,000 after buying an additional 8,170 shares during the period. 35.61% of the stock is currently owned by hedge funds and other institutional investors.

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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