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

Key Points

• Stagwell has a consensus analyst rating of "Hold" from seven covering firms, with four buys, two holds, and one sell; the average 12-month target price is $7.80.
• The company recently reported Q1 earnings of $0.17 per share, slightly below estimates, while revenue came in at $704.14 million, above expectations and up 8.0% year over year.
• There was notable insider activity: CEO Mark Jeffery Penn bought 20,000 shares, while Director Bradley J. Gross sold 2.16 million shares, a sharp reduction in his stake.

Stagwell Inc. (NASDAQ:STGW - Get Free Report) has received a consensus rating of "Hold" from the seven ratings firms that are currently covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have issued a buy rating on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $7.80.

STGW has been the subject of several recent analyst reports. Rosenblatt Securities restated a "buy" rating and set a $9.00 target price on shares of Stagwell in a research note on Tuesday, May 5th. Zacks Research raised Stagwell from a "strong sell" rating to a "hold" rating in a report on Friday, June 5th. Weiss Ratings downgraded Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 4th. Wall Street Zen lowered Stagwell from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 2nd. Finally, Needham & Company LLC lifted their target price on Stagwell from $7.25 to $8.00 and gave the company a "buy" rating in a research report on Monday, June 29th.

Stagwell Price Performance

Shares of NASDAQ:STGW opened at $7.51 on Friday. The firm has a 50 day moving average of $6.90 and a 200-day moving average of $6.22. The stock has a market capitalization of $1.86 billion, a PE ratio of 107.29 and a beta of 1.26. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 1.99. Stagwell has a 12 month low of $4.28 and a 12 month high of $8.07.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). The firm had revenue of $704.14 million for the quarter, compared to analyst estimates of $700.48 million. Stagwell had a return on equity of 24.12% and a net margin of 0.64%.The business's revenue was up 8.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.12 EPS. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. On average, equities research analysts predict that Stagwell will post 0.86 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Mark Jeffery Penn purchased 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The shares were bought at an average cost of $5.88 per share, with a total value of $117,600.00. Following the acquisition, 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 position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Bradley J. Gross sold 2,163,790 shares of the company's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $6.04, for a total transaction of $13,069,291.60. Following the transaction, the director owned 8,789 shares of the company's stock, valued at approximately $53,085.56. This represents a 99.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 11.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of STGW. Kanen Wealth Management LLC acquired a new stake in shares of Stagwell during the 1st quarter valued at $497,000. Empowered Funds LLC bought a new position in Stagwell in the first quarter valued at about $2,862,000. Quantinno Capital Management LP raised its position in Stagwell by 35.9% in the first quarter. Quantinno Capital Management LP now owns 136,019 shares of the company's stock valued at $856,000 after purchasing an additional 35,914 shares during the last quarter. Sei Investments Co. boosted its stake in shares of Stagwell by 104.2% during the first quarter. Sei Investments Co. now owns 371,788 shares of the company's stock valued at $2,339,000 after purchasing an additional 189,751 shares in the last quarter. Finally, First Trust Advisors LP grew its holdings in shares of Stagwell by 53.0% during the first quarter. First Trust Advisors LP now owns 673,642 shares of the company's stock worth $4,237,000 after purchasing an additional 233,489 shares during the last quarter. 35.61% of the stock is currently owned by institutional investors and hedge funds.

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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