Stagwell Inc. (NASDAQ:STGW) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is moderately positive: Five of seven analysts rate Stagwell a buy, while one rates it hold and one sell. The average 12-month price target is $9.60, above the reported $9.28 share price.
• Quarterly results exceeded expectations: Stagwell reported adjusted earnings of $0.25 per share versus the $0.19 consensus estimate, while revenue rose 11.2% year over year to $786.31 million.
• Shares have rallied but carry notable financial risks: The stock was up 2.1% at $9.28, near its 12-month high of $9.40, while its debt-to-equity ratio stood at 2.11 and an insider recently sold 62,000 shares.

Shares of Stagwell Inc. (NASDAQ:STGW - Get Free Report) have earned an average rating of "Moderate Buy" from the seven brokerages that are currently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and five have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $9.60.

Several analysts have weighed in on the company. Needham & Company LLC boosted their price target on Stagwell from $8.00 to $10.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Zacks Research upgraded Stagwell from a "strong sell" rating to a "hold" rating in a research note on Friday, June 5th. B. Riley Financial lifted their target price on Stagwell from $8.00 to $10.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Rosenblatt Securities upped their target price on Stagwell from $9.00 to $10.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Stagwell in a report on Friday, July 31st.

Insider Buying and Selling

In other Stagwell news, insider Frank P. Lanuto sold 62,000 shares of the company's 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 of the company's stock, valued at approximately $4,162,125.42. This represents a 11.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 11.20% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Kestra Advisory Services LLC acquired a new stake in shares of Stagwell during the 4th quarter worth approximately $26,000. Clearstead Advisors LLC boosted its position in Stagwell by 186.2% during the fourth quarter. Clearstead Advisors LLC now owns 7,020 shares of the company's stock worth $34,000 after purchasing an additional 4,567 shares in the last quarter. Tower Research Capital LLC TRC grew 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 valued at $49,000 after purchasing an additional 8,170 shares during the period. Inceptionr LLC acquired a new stake in Stagwell in the fourth quarter valued at approximately $50,000. Finally, New York State Teachers Retirement System acquired a new stake in Stagwell in the 4th quarter valued at $52,000. 35.61% of the stock is owned by institutional investors and hedge funds.

Stagwell Trading Up 2.1%

NASDAQ STGW opened at $9.28 on Wednesday. Stagwell has a 12-month low of $4.28 and a 12-month high of $9.40. The company has a fifty day simple moving average of $7.48 and a two-hundred day simple moving average of $6.55. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 2.11. The stock has a market cap of $2.27 billion, a P/E ratio of 154.67 and a beta of 1.25.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates 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 analyst estimates of $754.56 million. During the same period in the previous year, the company earned $0.17 earnings per share. The business'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. On average, analysts forecast that Stagwell will post 0.86 earnings per share for the current 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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