Stagwell (NASDAQ:STGW) Downgraded to "Strong Sell" Rating by Zacks Research

Stagwell (NASDAQ:STGW - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Thursday,Zacks.com reports.

Other research analysts also recently issued research reports about the company. Wall Street Zen downgraded Stagwell from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 2nd. B. Riley Financial lowered their price target on Stagwell from $9.00 to $7.00 and set a "buy" rating on the stock in a report on Friday, March 6th. Craig Hallum set a $8.00 price objective on shares of Stagwell and gave the company a "buy" rating in a research report on Wednesday, March 11th. Rosenblatt Securities reaffirmed a "buy" rating and set a $9.00 price objective on shares of Stagwell in a research report on Tuesday. Finally, Weiss Ratings lowered shares of Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Stagwell currently has an average rating of "Hold" and a consensus target price of $7.71.

Stagwell Stock Up 0.2%

STGW stock opened at $6.47 on Thursday. The company's 50 day simple moving average is $6.18 and its 200-day simple moving average is $5.62. Stagwell has a 52-week low of $4.03 and a 52-week high of $7.52. The company has a debt-to-equity ratio of 1.99, a current ratio of 0.83 and a quick ratio of 0.79. The firm has a market capitalization of $1.64 billion, a P/E ratio of 92.43 and a beta of 1.27.

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 return on equity of 24.12% and a net margin of 0.64%.The firm had revenue of $704.14 million for the quarter, compared to analysts' expectations of $700.48 million. During the same quarter in the previous year, the firm posted $0.12 earnings per share. The company's revenue for the quarter was up 8.0% on a year-over-year basis. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. As a group, equities research analysts anticipate that Stagwell will post 0.86 EPS for the current year.

Insiders Place Their Bets

In other Stagwell news, Director Bradley J. Gross sold 2,163,790 shares of Stagwell 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 completion of the sale, the director directly owned 8,789 shares in the company, valued at $53,085.56. The trade was a 99.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 5.60% of the company's stock.

Institutional Trading of Stagwell

Several large investors have recently added to or reduced their stakes in STGW. AQR Capital Management LLC bought a new stake in Stagwell in the first quarter worth approximately $74,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Stagwell by 6.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,193 shares of the company's stock worth $316,000 after acquiring an additional 3,249 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Stagwell in the first quarter worth approximately $137,000. Jane Street Group LLC grew its position in Stagwell by 36.0% in the first quarter. Jane Street Group LLC now owns 123,000 shares of the company's stock worth $744,000 after acquiring an additional 32,546 shares in the last quarter. Finally, Legal & General Group Plc grew its position in Stagwell by 5.2% in the second quarter. Legal & General Group Plc now owns 101,049 shares of the company's stock worth $455,000 after acquiring an additional 5,017 shares in the last quarter. 35.61% of the stock is owned by 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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