Stagwell Inc. (NASDAQ:STGW) Stock Has Average Target Price of $9.60

Key Points

• Analyst sentiment is moderately positive: Seven firms rate Stagwell “Moderate Buy,” with five buys and two holds. The average 12-month price target is $9.60, above the reported $8.14 share price.
• Quarterly results exceeded expectations: Stagwell reported $0.25 EPS versus the $0.19 consensus and revenue of $786.31 million versus $754.56 million expected. Revenue increased 11.2% year over year.
• Institutional ownership remains significant, while an insider reduced holdings: Hedge funds and other institutions own 35.61% of the company, with several investors increasing their positions. Insider Frank Lanuto sold 62,000 shares at an average price of $8.46.

Stagwell Inc. (NASDAQ:STGW - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the seven research firms that are covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $9.60.

A number of research analysts have weighed in on STGW shares. Zacks Research upgraded shares of Stagwell from a "strong sell" rating to a "hold" rating in a research report on Friday, June 5th. Rosenblatt Securities raised their target price on shares of Stagwell from $9.00 to $10.00 and gave the stock a "buy" rating in a report on Tuesday, August 4th. Weiss Ratings raised shares of Stagwell from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, August 13th. Needham & Company LLC increased their price objective on shares of Stagwell from $8.00 to $10.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, Wells Fargo & Company increased their price objective on shares of Stagwell from $8.00 to $10.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st.

Stagwell Price Performance

NASDAQ:STGW opened at $8.14 on Thursday. The firm has a market capitalization of $1.99 billion, a price-to-earnings ratio of 135.67 and a beta of 1.22. The company has a debt-to-equity ratio of 2.11, a current ratio of 0.81 and a quick ratio of 0.81. The business has a 50 day simple moving average of $8.58 and a 200-day simple moving average of $7.38. Stagwell has a 1 year low of $4.28 and a 1 year high of $9.55.

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, beating the consensus estimate of $0.19 by $0.06. The firm had revenue of $786.31 million for the quarter, compared to the consensus estimate of $754.56 million. Stagwell had a return on equity of 27.30% and a net margin of 0.53%.The company's revenue for the quarter was up 11.2% compared to the same quarter last year. 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. Equities analysts forecast that Stagwell will post 0.92 EPS for the current year.

Insider Activity at Stagwell

In other news, insider Frank Lanuto sold 62,000 shares of the 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 sale, the insider directly 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 sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 11.20% of the company's stock.

Hedge Funds Weigh In On Stagwell

Large investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP grew its position in Stagwell by 22.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,035,320 shares of the company's stock valued at $31,671,000 after acquiring an additional 923,771 shares during the last quarter. First Trust Advisors LP lifted its position in shares of Stagwell by 53.0% during the first quarter. First Trust Advisors LP now owns 673,642 shares of the company's stock worth $4,237,000 after purchasing an additional 233,489 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Stagwell during the second quarter valued at $3,907,000. Empowered Funds LLC bought a new position in shares of Stagwell in the first quarter worth about $2,862,000. Finally, Sei Investments Co. grew its stake in Stagwell by 104.2% in the 1st quarter. Sei Investments Co. now owns 371,788 shares of the company's stock worth $2,339,000 after acquiring an additional 189,751 shares in the last quarter. Hedge funds and other institutional investors own 35.61% of the company's stock.

Stagwell Company Profile

Stagwell Inc is a global marketing and communications network that provides advertising, public relations, media, digital transformation, consumer research and strategic consulting services. Through its network of agencies, the company helps brands develop marketing strategies, create content, engage audiences and use technology and data to support business growth.

Stagwell's businesses serve clients across industries and include capabilities such as creative advertising, media planning and buying, public affairs, healthcare communications, brand strategy, digital product development and market research.

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