Stagwell Inc. (NASDAQ:STGW) Given Average Rating of "Hold" by Brokerages

Key Points

• Broker sentiment is mixed but leans neutral: Stagwell has an average analyst rating of "Hold" from seven covering firms, with four buys, two holds, and one sell. The average 12-month price target is $7.65.
• Insider trading was split: Director Bradley J. Gross sold 2.16 million shares in May, while CEO Mark Jeffery Penn bought 20,000 shares. Company insiders own about 11.2% of the stock.
• Recent results topped revenue expectations but missed EPS: Stagwell reported quarterly EPS of $0.17, missing estimates by a penny, while revenue came in at $704.1 million, slightly above expectations and up 8% year over year.

Stagwell Inc. (NASDAQ:STGW - Get Free Report) has received an average rating of "Hold" from the seven ratings firms that are currently covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell rating, two have assigned a hold rating and four have assigned a buy rating to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $7.65.

STGW has been the subject of a number of recent research reports. Wall Street Zen downgraded Stagwell from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 2nd. Zacks Research raised Stagwell from a "strong sell" rating to a "hold" rating in a research report on Friday, June 5th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $9.00 target price on shares of Stagwell in a research report on Tuesday, May 5th. Weiss Ratings cut Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 4th. Finally, Craig Hallum set a $8.00 target price on Stagwell and gave the stock a "buy" rating in a research report on Wednesday, March 11th.

Insider Buying and Selling at Stagwell

In other news, Director Bradley J. Gross sold 2,163,790 shares of the firm's stock in a transaction 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 owned 8,789 shares of the company's stock, valued at $53,085.56. This trade represents a 99.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Mark Jeffery Penn bought 20,000 shares of the firm's stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average cost of $5.88 per share, with a total value of $117,600.00. Following the transaction, the chief executive officer 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 ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 11.20% of the company's stock.

Institutional Trading of Stagwell

Several hedge funds and other institutional investors have recently modified their holdings of the business. Hotchkis & Wiley Capital Management LLC boosted its position in shares of Stagwell by 4.6% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 21,034,577 shares of the company's stock worth $118,425,000 after buying an additional 920,431 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of Stagwell by 22.5% in the first quarter. Dimensional Fund Advisors LP now owns 5,035,320 shares of the company's stock worth $31,671,000 after buying an additional 923,771 shares during the period. UBS Group AG boosted its position in shares of Stagwell by 10.8% in the third quarter. UBS Group AG now owns 2,851,083 shares of the company's stock worth $16,052,000 after buying an additional 277,637 shares during the period. JPMorgan Chase & Co. raised its holdings in shares of Stagwell by 54.1% during the fourth quarter. JPMorgan Chase & Co. now owns 2,676,532 shares of the company's stock worth $13,088,000 after acquiring an additional 939,888 shares in the last quarter. Finally, State Street Corp raised its holdings in shares of Stagwell by 3.3% during the fourth quarter. State Street Corp now owns 2,299,100 shares of the company's stock worth $11,243,000 after acquiring an additional 73,817 shares in the last quarter. Institutional investors and hedge funds own 35.61% of the company's stock.

Stagwell Price Performance

Shares of NASDAQ:STGW opened at $6.66 on Tuesday. Stagwell has a one year low of $4.28 and a one year high of $7.52. The stock has a fifty day moving average of $6.62 and a 200-day moving average of $5.95. The company has a market capitalization of $1.65 billion, a PE ratio of 95.14 and a beta of 1.29. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.83 and a current ratio of 0.83.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.17 EPS for the quarter, missing analysts' consensus estimates 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 analyst estimates of $700.48 million. During the same quarter last year, the company posted $0.12 EPS. Stagwell's revenue was up 8.0% on a year-over-year basis. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. As a group, equities analysts anticipate that Stagwell will post 0.86 EPS for the current fiscal year.

About Stagwell

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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