Stagwell (NASDAQ:STGW) Sets New 12-Month High - Here's What Happened

Key Points

• Stagwell shares reached a new 52-week high of $9.64, trading above the previous close of $8.86 on volume of more than 3.1 million shares.
• Analyst sentiment is broadly positive: Stagwell has a consensus “Moderate Buy” rating and an average price target of $10.17, with Goldman Sachs setting a $13 target.
• The company beat quarterly expectations, reporting $0.25 in EPS versus $0.19 expected and revenue of $786.31 million, up 11.2% year over year; an insider subsequently sold 62,000 shares.

Shares of Stagwell Inc. (NASDAQ:STGW - Get Free Report) hit a new 52-week high during trading on Wednesday. The stock traded as high as $9.64 and last traded at $9.13, with a volume of 3,152,208 shares trading hands. The stock had previously closed at $8.86.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on STGW. Weiss Ratings raised shares of Stagwell from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Rosenblatt Securities increased their price target on Stagwell from $9.00 to $10.00 and gave the stock a "buy" rating in a research note on Tuesday, August 4th. Wall Street Zen cut Stagwell from a "strong-buy" rating to a "buy" rating in a report on Sunday, October 4th. Needham & Company LLC raised their price target on Stagwell from $8.00 to $10.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Finally, The Goldman Sachs Group initiated coverage on Stagwell in a research report on Monday, October 5th. They issued a "buy" rating and a $13.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Stagwell currently has a consensus rating of "Moderate Buy" and an average price target of $10.17.

Stagwell Stock Performance

The firm has a market capitalization of $2.23 billion, a PE ratio of 11.07 and a beta of 1.30. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.81 and a current ratio of 0.81. The business's fifty day simple moving average is $8.68 and its 200-day simple moving average is $7.54.

Stagwell (NASDAQ:STGW - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.19 by $0.06. Stagwell had a net margin of 0.53% and a return on equity of 27.30%. The firm had revenue of $786.31 million for the quarter, compared to the consensus estimate of $754.56 million. During the same quarter in the previous year, the firm earned $0.17 earnings per share. The company's quarterly revenue was up 11.2% compared to the same quarter last year. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. As a group, equities research analysts expect that Stagwell Inc. will post 0.92 EPS for the current year.

Insider Transactions at Stagwell

In other Stagwell news, insider Frank Lanuto sold 62,000 shares of Stagwell stock in a transaction on Friday, July 31st. The shares were 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. The trade was a 11.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 11.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Tidal Investments LLC purchased a new position in shares of Stagwell during the second quarter valued at about $117,000. Integrated Wealth Concepts LLC bought a new stake in shares of Stagwell in the second quarter worth about $52,000. Corient Private Wealth LP purchased a new stake in shares of Stagwell in the second quarter worth about $238,000. Concurrent Investment Advisors LLC lifted its position in shares of Stagwell by 86.6% in the second quarter. Concurrent Investment Advisors LLC now owns 80,795 shares of the company's stock worth $600,000 after buying an additional 37,485 shares in the last quarter. Finally, Headlands Technologies LLC purchased a new stake in shares of Stagwell in the second quarter worth about $141,000. Institutional investors own 35.61% of the company's stock.

About Stagwell

Stagwell Inc NASDAQ: STGW is a global marketing and communications network that provides services to businesses, government organizations and other institutions. The company combines creative, media, digital transformation, public relations, strategic consulting, consumer insights and data-driven marketing capabilities through a network of specialized agencies.

Its services include brand strategy and development, advertising, media planning and buying, public affairs, corporate communications, public relations, social media, technology consulting, website and product design, customer experience and analytics.

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