ABLE Financial Group LLC Invests $10 Million in Stagwell Inc. $STGW

Key Points

• ABLE Financial Group LLC made a significant investment of $10 million in Stagwell Inc., acquiring over 2.2 million shares, which now represent 2.4% of their portfolio.
• Stagwell has received varying ratings from analysts, with three rating it as a Buy and three as a Hold, leading to a consensus price target of $8.17.
• The company's most recent earnings report showed a slight miss on EPS expectations, with revenue growing by 5.3% year-over-year, indicating positive growth despite a negative net margin.

ABLE Financial Group LLC bought a new stake in shares of Stagwell Inc. (NASDAQ:STGW - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 2,222,342 shares of the company's stock, valued at approximately $10,001,000. Stagwell comprises approximately 2.4% of ABLE Financial Group LLC's investment portfolio, making the stock its 9th biggest holding. ABLE Financial Group LLC owned 0.83% of Stagwell at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Stagwell by 4.0% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 48,944 shares of the company's stock worth $322,000 after buying an additional 1,892 shares during the last quarter. Ameriprise Financial Inc. increased its stake in shares of Stagwell by 0.6% in the fourth quarter. Ameriprise Financial Inc. now owns 351,397 shares of the company's stock valued at $2,312,000 after buying an additional 1,974 shares during the period. Swiss National Bank increased its stake in shares of Stagwell by 1.5% in the first quarter. Swiss National Bank now owns 178,100 shares of the company's stock valued at $1,078,000 after buying an additional 2,600 shares during the period. Optimize Financial Inc increased its position in Stagwell by 15.1% during the 1st quarter. Optimize Financial Inc now owns 35,390 shares of the company's stock valued at $214,000 after purchasing an additional 4,635 shares during the period. Finally, ProShare Advisors LLC increased its position in Stagwell by 20.2% during the 4th quarter. ProShare Advisors LLC now owns 41,307 shares of the company's stock valued at $272,000 after purchasing an additional 6,929 shares during the period. Institutional investors and hedge funds own 35.61% of the company's stock.

Stagwell Price Performance

Shares of NASDAQ:STGW traded up $0.29 during midday trading on Monday, hitting $5.38. The company had a trading volume of 1,872,982 shares, compared to its average volume of 1,042,211. Stagwell Inc. has a twelve month low of $4.03 and a twelve month high of $8.18. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.86 and a quick ratio of 0.86. The stock has a market cap of $1.39 billion, a price-to-earnings ratio of 10.83 and a beta of 1.47. The business's 50-day simple moving average is $5.42 and its 200-day simple moving average is $5.25.

Stagwell (NASDAQ:STGW - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.02). The firm had revenue of $706.82 million for the quarter, compared to analysts' expectations of $696.03 million. Stagwell had a positive return on equity of 14.54% and a negative net margin of 0.06%.The company's quarterly revenue was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.14 earnings per share. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. On average, research analysts predict that Stagwell Inc. will post 0.59 earnings per share for the current year.

Wall Street Analysts Forecast Growth

STGW has been the topic of several recent analyst reports. Morgan Stanley dropped their price objective on Stagwell from $8.00 to $7.00 and set an "equal weight" rating on the stock in a research note on Friday, August 1st. Rosenblatt Securities restated a "buy" rating and issued a $10.00 target price on shares of Stagwell in a research note on Monday, July 28th. Needham & Company LLC reaffirmed a "buy" rating and issued a $6.36 price target on shares of Stagwell in a research note on Tuesday, July 22nd. Zacks Research raised Stagwell from a "strong sell" rating to a "hold" rating in a research note on Monday, September 1st. Finally, Wall Street Zen downgraded Stagwell from a "buy" rating to a "hold" rating in a report on Friday, August 22nd. Three analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Stagwell currently has an average rating of "Moderate Buy" and an average target price of $8.17.

About Stagwell

Stagwell Inc provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement.