Stagwell (NASDAQ:STGW) Stock Price Up 5.5% - Here's What Happened

Key Points

• Stagwell shares rose 5.5% to $9.345 during Tuesday trading, although volume was about 84% below the stock’s average daily volume.
• Analyst sentiment remains positive: Stagwell has a consensus “Moderate Buy” rating and an average price target of $10.17, with Goldman Sachs initiating coverage at “Buy” and a $13 target.
• The company exceeded quarterly expectations, reporting $0.25 in EPS versus a $0.19 estimate and $786.31 million in revenue, up 11.2% year over year; an insider subsequently sold 62,000 shares at an average price of $8.46.

Shares of Stagwell Inc. (NASDAQ:STGW - Get Free Report) were up 5.5% during trading on Tuesday. The company traded as high as $9.26 and last traded at $9.3450. Approximately 248,429 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 1,593,704 shares. The stock had previously closed at $8.86.

Wall Street Analyst Weigh In

Several research analysts recently commented on STGW shares. The Goldman Sachs Group began coverage on shares of Stagwell in a report on Monday, October 5th. They set a "buy" rating and a $13.00 target price for the company. Rosenblatt Securities lifted their price target on shares of Stagwell from $9.00 to $10.00 and gave the company a "buy" rating in a research note on Tuesday, August 4th. Wall Street Zen cut shares of Stagwell from a "strong-buy" rating to a "buy" rating in a research report on Sunday, October 4th. Wells Fargo & Company boosted their price target 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. Finally, 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 note on Thursday, July 30th. One investment 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 stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $10.17.

Stagwell Trading Up 5.8%

The stock has a market cap of $2.29 billion, a price-to-earnings ratio of 155.93 and a beta of 1.30. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 2.11. The business's 50 day simple moving average is $8.68 and its 200 day simple moving average is $7.52.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.19 by $0.06. The company had revenue of $786.31 million during the quarter, compared to the consensus estimate of $754.56 million. Stagwell had a net margin of 0.53% and a return on equity of 27.30%. The company's quarterly revenue was up 11.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.17 EPS. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. On average, research analysts expect that Stagwell Inc. will post 0.92 EPS for the current fiscal year.

Insider Transactions at Stagwell

In related news, insider Frank Lanuto sold 62,000 shares of Stagwell stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $8.46, for a total transaction of $524,520.00. Following the completion of the transaction, the insider owned 491,977 shares in the company, valued at approximately $4,162,125.42. This trade represents a 11.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 11.20% of the company's stock.

Institutional Trading of Stagwell

Several institutional investors and hedge funds have recently bought and sold shares of the business. Integrated Wealth Concepts LLC bought a new position in shares of Stagwell during the 2nd quarter worth approximately $52,000. Tidal Investments LLC acquired a new position in shares of Stagwell during the 2nd quarter worth approximately $117,000. Pictet Asset Management Holding SA increased its holdings in shares of Stagwell by 34.7% during the 1st quarter. Pictet Asset Management Holding SA now owns 20,014 shares of the company's stock worth $126,000 after acquiring an additional 5,155 shares during the last quarter. Headlands Technologies LLC bought a new stake in Stagwell in the 2nd quarter valued at $141,000. Finally, Corient Private Wealth LP bought a new stake in Stagwell in the 2nd quarter valued at $238,000. Institutional investors own 35.61% of the company's stock.

Stagwell Company Profile

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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