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

Key Points

• Stagwell has a consensus analyst rating of "Hold" from seven brokerages, with four buys, one hold, and two sells. The average 12-month price target is $7.65.
• The company recently reported quarterly EPS of $0.17, missing estimates by $0.01, while revenue came in at $704.14 million, slightly above expectations and up 8% year over year.
• Insider activity was mixed: CEO Mark Jeffery Penn bought 20,000 shares, while Director Bradley J. Gross sold 2,163,790 shares, sharply reducing his stake.

Stagwell Inc. (NASDAQ:STGW - Get Free Report) has been given an average recommendation of "Hold" by the seven brokerages that are covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, one has given 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.

A number of research firms have issued reports on STGW. Rosenblatt Securities reiterated a "buy" rating and issued a $9.00 price objective on shares of Stagwell in a report on Tuesday, May 5th. Wall Street Zen downgraded Stagwell from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 2nd. B. Riley Financial decreased their price objective on Stagwell from $9.00 to $7.00 and set a "buy" rating for the company in a report on Friday, March 6th. Weiss Ratings downgraded Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Finally, Zacks Research downgraded Stagwell from a "hold" rating to a "strong sell" rating in a report on Thursday, May 7th.

Stagwell Trading Up 0.3%

NASDAQ:STGW opened at $7.01 on Friday. Stagwell has a 12 month low of $4.03 and a 12 month high of $7.52. The stock has a market cap of $1.74 billion, a price-to-earnings ratio of 100.14 and a beta of 1.27. The company has a 50-day moving average price of $6.46 and a 200-day moving average price of $5.77. 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 (NASDAQ:STGW - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.01). Stagwell had a net margin of 0.64% and a return on equity of 24.12%. The firm had revenue of $704.14 million for the quarter, compared to the consensus estimate of $700.48 million. During the same period in the previous year, the firm posted $0.12 earnings per share. The business's revenue was up 8.0% compared to the same quarter last year. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. Equities analysts predict that Stagwell will post 0.86 EPS for the current year.

Insider Transactions at Stagwell

In related news, CEO Mark Jeffery Penn acquired 20,000 shares of Stagwell stock in a transaction that occurred on Wednesday, May 13th. The stock was bought at an average price of $5.88 per share, with a total value of $117,600.00. Following the transaction, the chief executive officer directly owned 23,034,990 shares in the company, valued at approximately $135,445,741.20. This represents a 0.09% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Bradley J. Gross sold 2,163,790 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $6.04, for a total value of $13,069,291.60. Following the transaction, the director directly owned 8,789 shares of the company's stock, valued at approximately $53,085.56. This trade represents a 99.60% decrease in their position. The disclosure for this sale is available in the SEC filing. 11.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Stagwell

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

Stagwell Company Profile

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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