Stagwell (NASDAQ:STGW) Downgraded by Wall Street Zen to Buy

Key Points

• Wall Street Zen downgraded Stagwell from “strong buy” to “buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $9.60.
• Stagwell’s latest quarterly results beat expectations, with EPS of $0.25 versus a $0.19 estimate and revenue of $786.31 million, up 11.2% year over year.
• The stock opened at $9.12 after a 2% decline, near its 52-week high of $9.55; an insider also sold 62,000 shares for approximately $524,520.

Stagwell (NASDAQ:STGW - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Saturday.

A number of other research firms have also issued reports on STGW. B. Riley Financial boosted their price objective on Stagwell from $8.00 to $10.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Rosenblatt Securities raised their target price on Stagwell from $9.00 to $10.00 and gave the stock a "buy" rating in a research note on Tuesday, August 4th. Wells Fargo & Company lifted their target price on Stagwell from $8.00 to $10.00 and gave the company an "overweight" rating in a report on Friday, July 31st. Weiss Ratings reiterated a "sell (d+)" rating on shares of Stagwell in a research report on Friday, July 31st. Finally, Zacks Research raised shares of Stagwell from a "strong sell" rating to a "hold" rating in a report on Friday, June 5th. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $9.60.

Stagwell Stock Down 2.0%

Stagwell stock opened at $9.12 on Friday. Stagwell has a 1-year low of $4.28 and a 1-year high of $9.55. The firm has a market capitalization of $2.23 billion, a price-to-earnings ratio of 152.00 and a beta of 1.25. 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 firm has a 50 day simple moving average of $7.64 and a 200 day simple moving average of $6.61.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.06. Stagwell had a return on equity of 27.30% and a net margin of 0.53%.The firm had revenue of $786.31 million for the quarter, compared to the consensus estimate of $754.56 million. During the same quarter in the prior year, the business posted $0.17 earnings per share. The business's quarterly revenue was up 11.2% on a year-over-year basis. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. On average, analysts predict that Stagwell will post 0.92 earnings per share for the current year.

Insider Buying and Selling at Stagwell

In other 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 transaction, the insider 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 SEC, which can be accessed through the SEC website. Insiders own 11.20% of the company's stock.

Hedge Funds Weigh In On Stagwell

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kestra Advisory Services LLC bought a new position in Stagwell in the 4th quarter worth about $26,000. Clearstead Advisors LLC boosted its position in shares of Stagwell by 186.2% during the 4th quarter. Clearstead Advisors LLC now owns 7,020 shares of the company's stock valued at $34,000 after acquiring an additional 4,567 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in shares of Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company's stock worth $49,000 after purchasing an additional 8,170 shares in the last quarter. Inceptionr LLC purchased a new position in shares of Stagwell during the fourth quarter worth about $50,000. Finally, New York State Teachers Retirement System bought a new position in shares of Stagwell in the fourth quarter worth approximately $52,000. 35.61% of the stock is currently owned by hedge funds and other institutional investors.

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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