Stagwell Inc. (NASDAQ:STGW) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Stagwell Inc. (NASDAQ: STGW) has received a consensus recommendation of "Moderate Buy" from five analysts, with an average 1-year price target of $8.17.
• Insider transactions show significant activity, with directors Charlene Barshefsky and Eli Samaha acquiring a combined total of over 264,000 shares in early June.
• Despite reporting revenue of $706.82 million for the last quarter, Stagwell missed earnings per share estimates, posting $0.17 compared to the expected $0.19.

Stagwell Inc. (NASDAQ:STGW - Get Free Report) has received an average rating of "Moderate Buy" from the five analysts that are covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $8.1720.

A number of analysts have recently issued reports on STGW shares. Morgan Stanley cut their target price on shares of Stagwell from $8.00 to $7.00 and set an "equal weight" rating for the company in a research note on Friday, August 1st. Needham & Company LLC reiterated a "buy" rating and issued a $6.36 price objective on shares of Stagwell in a research note on Tuesday, July 22nd. Wall Street Zen cut shares of Stagwell from a "buy" rating to a "hold" rating in a research note on Friday, August 22nd. Benchmark cut shares of Stagwell from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 9th. Finally, Wells Fargo & Company dropped their price objective on shares of Stagwell from $9.00 to $8.00 and set an "overweight" rating for the company in a research note on Monday, May 12th.

Insider Activity

In other Stagwell news, Director Charlene Barshefsky acquired 24,350 shares of the company's stock in a transaction on Wednesday, June 4th. The stock was 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 of the company's stock, valued at $796,858.80. This trade represents a 15.13% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Eli Samaha acquired 240,000 shares of the company's stock in a transaction on Thursday, June 5th. The stock was acquired at an average price of $4.43 per share, with a total value of $1,063,200.00. Following the purchase, the director directly owned 8,014,322 shares in the company, valued at approximately $35,503,446.46. This represents a 3.09% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired a total of 690,107 shares of company stock valued at $2,985,887 in the last quarter. Corporate insiders own 3.80% of the company's stock.

Hedge Funds Weigh In On Stagwell

Several hedge funds have recently bought and sold shares of STGW. ABLE Financial Group LLC bought a new position in Stagwell in the 2nd quarter valued at about $10,001,000. Diversify Wealth Management LLC bought a new position in Stagwell in the 2nd quarter valued at about $7,875,000. Boston Partners increased its holdings in Stagwell by 40.9% in the 2nd quarter. Boston Partners now owns 3,273,852 shares of the company's stock valued at $15,515,000 after buying an additional 950,913 shares during the period. Geode Capital Management LLC increased its holdings in Stagwell by 23.6% in the 2nd quarter. Geode Capital Management LLC now owns 2,852,617 shares of the company's stock valued at $12,838,000 after buying an additional 544,464 shares during the period. Finally, Penn Capital Management Company LLC increased its holdings in Stagwell by 24.8% in the 1st quarter. Penn Capital Management Company LLC now owns 2,084,525 shares of the company's stock valued at $12,646,000 after buying an additional 413,597 shares during the period. 35.61% of the stock is owned by institutional investors.

Stagwell Stock Performance

Shares of STGW stock opened at $5.60 on Wednesday. The stock has a market cap of $1.45 billion, a P/E ratio of 11.94 and a beta of 1.41. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.86 and a quick ratio of 0.86. The company has a fifty day moving average price of $5.07 and a two-hundred day moving average price of $5.38. Stagwell has a one year low of $4.03 and a one year high of $8.18.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.02). The company had revenue of $706.82 million for the quarter, compared to analyst estimates of $696.03 million. Stagwell had a positive return on equity of 14.54% and a negative net margin of 0.06%.The business's quarterly revenue was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.14 EPS. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. As a group, equities analysts predict that Stagwell will post 0.59 EPS for the current 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.

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