Stagwell Inc. $STGW Holdings Decreased by Penn Capital Management Company LLC

Key Points

• Penn Capital Management reduced its Stagwell stake by 8.4% in the fourth quarter, selling about 199,257 shares and leaving it with 2.17 million shares valued at roughly $10.6 million.
• Insider trading was mixed: Director Bradley J. Gross sold 2.16 million shares, while CEO Mark Jeffery Penn bought 20,000 shares, signaling contrasting moves within the company.
• Analysts remain cautious overall despite several buy ratings; Stagwell currently has a consensus Hold rating with an average price target of $7.65, and the stock rose 1.5% to $6.61.

Penn Capital Management Company LLC trimmed its position in Stagwell Inc. (NASDAQ:STGW - Free Report) by 8.4% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,165,045 shares of the company's stock after selling 199,257 shares during the quarter. Penn Capital Management Company LLC owned approximately 0.86% of Stagwell worth $10,614,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also made changes to their positions in the company. Hotchkis & Wiley Capital Management LLC increased its holdings in shares of Stagwell by 4.6% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 21,034,577 shares of the company's stock valued at $118,425,000 after acquiring an additional 920,431 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Stagwell by 17.0% in the 3rd quarter. Dimensional Fund Advisors LP now owns 3,241,987 shares of the company's stock valued at $18,249,000 after acquiring an additional 471,017 shares during the last quarter. UBS Group AG increased its holdings in shares of Stagwell by 10.8% in the 3rd quarter. UBS Group AG now owns 2,851,083 shares of the company's stock valued at $16,052,000 after acquiring an additional 277,637 shares during the last quarter. JPMorgan Chase & Co. increased its holdings in shares of Stagwell by 59.0% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,736,644 shares of the company's stock valued at $9,777,000 after acquiring an additional 644,654 shares during the last quarter. Finally, Russell Investments Group Ltd. increased its holdings in shares of Stagwell by 24.2% in the 3rd quarter. Russell Investments Group Ltd. now owns 764,034 shares of the company's stock valued at $4,302,000 after acquiring an additional 148,652 shares during the last quarter. 35.61% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on STGW. B. Riley Financial lowered their price target on Stagwell from $9.00 to $7.00 and set a "buy" rating for the company in a report on Friday, March 6th. Craig Hallum set a $8.00 price target on Stagwell and gave the company a "buy" rating in a report on Wednesday, March 11th. Weiss Ratings downgraded Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Wall Street Zen downgraded Stagwell from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 2nd. Finally, Rosenblatt Securities restated a "buy" rating and set a $9.00 price objective on shares of Stagwell in a research note on Tuesday, May 5th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Stagwell presently has a consensus rating of "Hold" and an average price target of $7.65.

Insider Buying and Selling at Stagwell

In related news, Director Bradley J. Gross sold 2,163,790 shares of the company's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $6.04, for a total transaction of $13,069,291.60. Following the transaction, the director directly owned 8,789 shares of the company's stock, valued at approximately $53,085.56. The trade was a 99.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Mark Jeffery Penn purchased 20,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average cost of $5.88 per share, for a total transaction of $117,600.00. Following the completion of the transaction, the chief executive officer directly owned 23,034,990 shares of the company's stock, valued at $135,445,741.20. This trade represents a 0.09% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 11.20% of the company's stock.

Stagwell Trading Up 1.5%

NASDAQ:STGW opened at $6.61 on Wednesday. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.83 and a current ratio of 0.83. The stock has a market cap of $1.64 billion, a price-to-earnings ratio of 94.43 and a beta of 1.27. The business has a fifty day moving average of $6.42 and a 200-day moving average of $5.74. Stagwell Inc. has a 1 year low of $4.03 and a 1 year high of $7.52.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.01). Stagwell had a net margin of 0.64% and a return on equity of 24.12%. The company had revenue of $704.14 million for the quarter, compared to analysts' expectations of $700.48 million. During the same period in the prior year, the company earned $0.12 earnings per share. The company's revenue for the quarter was up 8.0% on a year-over-year basis. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. Equities analysts predict that Stagwell Inc. will post 0.86 earnings per share for the current year.

Stagwell Profile

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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