UBS Group AG Sells 2,044,241 Shares of Stagwell Inc. $STGW

Key Points

• UBS Group AG cut its Stagwell stake by 71.7% in the fourth quarter, selling 2,044,241 shares and leaving it with 806,842 shares valued at about $3.95 million.
• Stagwell reported quarterly earnings of $0.17 EPS, missing expectations by $0.01, while revenue came in at $704.14 million, slightly above estimates and up 8% year over year.
• Analyst sentiment is mixed: recent downgrades from Zacks and Weiss were offset by buy ratings from Craig Hallum and Rosenblatt, with the consensus rating currently at Hold and a $7.65 target price.

UBS Group AG lowered its position in Stagwell Inc. (NASDAQ:STGW - Free Report) by 71.7% during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 806,842 shares of the company's stock after selling 2,044,241 shares during the period. UBS Group AG owned 0.32% of Stagwell worth $3,945,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. State of Alaska Department of Revenue bought a new position in Stagwell in the third quarter worth approximately $47,000. Tower Research Capital LLC TRC boosted its holdings in Stagwell by 311.8% in the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company's stock worth $49,000 after acquiring an additional 8,170 shares in the last quarter. Wealth Enhancement Advisory Services LLC bought a new position in Stagwell in the fourth quarter worth approximately $61,000. CIBC Bancorp USA Inc. bought a new position in Stagwell in the third quarter worth approximately $69,000. Finally, AQR Capital Management LLC bought a new position in Stagwell in the first quarter worth approximately $74,000. Institutional investors own 35.61% of the company's stock.

Stagwell Stock Performance

Shares of Stagwell stock opened at $6.51 on Friday. The company has a market cap of $1.61 billion, a PE ratio of 93.00 and a beta of 1.27. Stagwell Inc. has a 52 week low of $4.03 and a 52 week high of $7.52. The business has a 50 day moving average price of $6.41 and a 200-day moving average price of $5.71. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 1.99.

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

Analysts Set New Price Targets

Several brokerages have issued reports on STGW. Zacks Research lowered Stagwell from a "hold" rating to a "strong sell" rating in a report on Thursday, May 7th. Craig Hallum set a $8.00 price target on Stagwell and gave the stock a "buy" rating in a report on Wednesday, March 11th. Weiss Ratings lowered Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Wall Street Zen lowered Stagwell from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $9.00 price target on shares of Stagwell in a report on Tuesday, May 5th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $7.65.

Insider Activity at Stagwell

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

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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