Stagwell Inc. (NASDAQ:STGW) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Stagwell Inc. (NASDAQ:STGW) has received a consensus recommendation of "Moderate Buy" from five research firms, with an average 12-month price target of $8.17.
• The company recently reported an earnings per share (EPS) of $0.17 for the quarter, missing the consensus estimate of $0.19, despite revenue surpassing analyst expectations at $706.82 million.
• Insider purchasing activity increased, as Director Charlene Barshefsky acquired 24,350 shares at $4.30 each, raising her ownership in the company by 15.13%.

Shares of Stagwell Inc. (NASDAQ:STGW - Get Free Report) have been given an average rating of "Moderate Buy" by the five brokerages that are presently covering the company, MarketBeat reports. Two investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $8.1720.

STGW has been the subject of several recent analyst reports. Morgan Stanley decreased their price target on Stagwell from $8.00 to $7.00 and set an "equal weight" rating for the company in a research note on Friday. Rosenblatt Securities reissued a "buy" rating and set a $10.00 price objective on shares of Stagwell in a report on Monday, July 28th. Wells Fargo & Company dropped their target price on shares of Stagwell from $9.00 to $8.00 and set an "overweight" rating on the stock in a report on Monday, May 12th. Needham & Company LLC reaffirmed a "buy" rating and issued a $6.36 target price on shares of Stagwell in a research report on Tuesday, July 22nd. Finally, Wall Street Zen raised Stagwell from a "hold" rating to a "buy" rating in a report on Saturday.

Insider Buying and Selling at Stagwell

In related news, Director Charlene Barshefsky purchased 24,350 shares of the firm's stock in a transaction on Wednesday, June 4th. The shares were acquired at an average price of $4.30 per share, for a total transaction of $104,705.00. Following the purchase, the director directly owned 185,316 shares in the company, valued at $796,858.80. This trade represents a 15.13% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Mark Jeffery Penn acquired 10,000 shares of Stagwell stock in a transaction on Wednesday, May 21st. The stock was purchased at an average cost of $4.87 per share, for a total transaction of $48,700.00. Following the purchase, the chief executive officer owned 9,014,055 shares in the company, valued at approximately $43,898,447.85. The trade was a 0.11% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders have purchased 702,193 shares of company stock worth $3,044,496. Insiders own 3.80% of the company's stock.

Institutional Investors Weigh In On Stagwell

Several institutional investors have recently made changes to their positions in STGW. Jacobs Levy Equity Management Inc. raised its stake in shares of Stagwell by 0.3% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 622,361 shares of the company's stock valued at $4,095,000 after acquiring an additional 1,759 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Stagwell by 4.0% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 48,944 shares of the company's stock worth $322,000 after buying an additional 1,892 shares during the period. Ameriprise Financial Inc. grew its position in shares of Stagwell by 0.6% during the 4th quarter. Ameriprise Financial Inc. now owns 351,397 shares of the company's stock worth $2,312,000 after buying an additional 1,974 shares in the last quarter. Oppenheimer Asset Management Inc. increased its stake in shares of Stagwell by 11.7% during the second quarter. Oppenheimer Asset Management Inc. now owns 19,663 shares of the company's stock valued at $88,000 after buying an additional 2,066 shares during the period. Finally, Swiss National Bank raised its holdings in shares of Stagwell by 1.5% in the first quarter. Swiss National Bank now owns 178,100 shares of the company's stock valued at $1,078,000 after acquiring an additional 2,600 shares in the last quarter. Institutional investors own 35.61% of the company's stock.

Stagwell Stock Up 0.7%

Shares of STGW stock traded up $0.04 during mid-day trading on Friday, reaching $5.62. 1,857,701 shares of the company's stock traded hands, compared to its average volume of 1,589,857. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 1.88. The company's 50-day moving average price is $4.72 and its 200-day moving average price is $5.47. The company has a market cap of $1.50 billion, a P/E ratio of 11.87 and a beta of 1.41. Stagwell has a 12 month low of $4.03 and a 12 month high of $8.18.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.02). Stagwell had a negative net margin of 0.06% and a positive return on equity of 14.56%. The firm had revenue of $706.82 million for the quarter, compared to analysts' expectations of $696.03 million. During the same period last year, the company posted $0.14 earnings per share. The business's revenue for the quarter was up 5.3% compared to the same quarter last year. On average, equities analysts expect that Stagwell will post 0.59 earnings per share for the current fiscal year.

Stagwell Company Profile

Stagwell Inc provides digital transformation, performance media and data, consumer insights and strategy, and creativity and communications services. The company operates through three segments: Integrated Agencies Network, Brand Performance Network, and Communications Network. It designs and builds digital platforms and experiences that support the delivery of content, commerce, service, and sales; creates websites, mobile applications, back-end systems, content and data management systems, and other digital environments; designs and implements technology and data strategies; and develops software and related technology products, including artificial intelligence (AI)-enabled communications, research, and media technology, cookie-less data platforms for advance targeting and activation, software tools for e-commerce applications, specialty media solutions in the augmented reality space, and text messaging applications for consumer engagement.