Stagwell (NASDAQ:STGW) Given New $7.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley has lowered its price target for Stagwell (NASDAQ:STGW) from $8.00 to $7.00, maintaining an "equal weight" rating, which indicates potential upside of 30.23% from the last closing price.
• Stagwell shares fell by 6.2% to $5.38, with a year-to-date range of $4.03 to $8.18 and a current ratio of 0.91, indicating potential liquidity issues.
• Insiders of Stagwell have been actively buying shares, with Director Eli Samaha purchasing 425,757 shares valued at approximately $1.82 million in early June.

Stagwell (NASDAQ:STGW - Free Report) had its price target reduced by Morgan Stanley from $8.00 to $7.00 in a research note released on Friday morning,Benzinga reports. Morgan Stanley currently has an equal weight rating on the stock.

Other equities research analysts have also issued research reports about the company. Benchmark lowered Stagwell from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 9th. Needham & Company LLC reaffirmed a "buy" rating and set a $6.36 target price on shares of Stagwell in a report on Tuesday, July 22nd. Rosenblatt Securities reaffirmed a "buy" rating and set a $10.00 target price on shares of Stagwell in a report on Monday, July 28th. Finally, Wells Fargo & Company cut their target price on Stagwell from $9.00 to $8.00 and set an "overweight" rating on the stock in a report on Monday, May 12th. Two investment analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $8.17.

Stagwell Price Performance

Shares of STGW traded up $0.03 during midday trading on Friday, hitting $5.65. The company's stock had a trading volume of 1,056,648 shares, compared to its average volume of 1,026,808. Stagwell has a one year low of $4.03 and a one year high of $8.18. The company's fifty day simple moving average is $4.74 and its two-hundred day simple moving average is $5.47. 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 stock has a market capitalization of $1.51 billion, a price-to-earnings ratio of 11.87 and a beta of 1.41.

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

Insider Activity

In other Stagwell news, Director Charlene Barshefsky acquired 24,350 shares of the company's stock in a transaction dated Wednesday, June 4th. The shares were bought at an average cost of $4.30 per share, with a total value 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Mark Jeffery Penn purchased 10,000 shares of the company's stock in a transaction that occurred on Wednesday, May 21st. The shares were purchased at an average cost of $4.87 per share, for a total transaction of $48,700.00. Following the completion of the purchase, the chief executive officer owned 9,014,055 shares in the company, valued at $43,898,447.85. This trade represents a 0.11% increase in their position. The disclosure for this purchase can be found here. Insiders have acquired 702,193 shares of company stock valued at $3,044,496 in the last ninety days. 3.80% of the stock is owned by company insiders.

Institutional Trading of Stagwell

Institutional investors and hedge funds have recently modified their holdings of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Stagwell by 47.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 305,467 shares of the company's stock valued at $2,010,000 after purchasing an additional 98,367 shares during the period. Farther Finance Advisors LLC purchased a new stake in Stagwell during the first quarter valued at about $200,000. Prudential Financial Inc. purchased a new stake in Stagwell during the fourth quarter valued at about $442,000. BNP Paribas Financial Markets purchased a new position in shares of Stagwell in the fourth quarter worth about $75,000. Finally, Advisor Resource Council purchased a new position in shares of Stagwell in the first quarter worth about $608,000. 35.61% of the stock is owned by hedge funds and other institutional investors.

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.