Stagwell (NASDAQ:STGW) Price Target Raised to $8.00 at Needham & Company LLC

Key Points

• Needham & Company LLC raised its price target on Stagwell to $8.00 from $7.25 and maintained a buy rating, implying about 13.6% upside from the prior close.
• Analyst sentiment is mixed overall: recent moves include upgrades and downgrades from other firms, but MarketBeat says Stagwell currently has a consensus Hold rating with an average price target of $7.80.
• Stagwell recently reported Q1 earnings of $0.17 per share, missing estimates by $0.01, while revenue came in at $704.14 million, slightly above expectations and up 8% year over year.

Stagwell (NASDAQ:STGW - Get Free Report) had its price target increased by investment analysts at Needham & Company LLC from $7.25 to $8.00 in a research note issued to investors on Monday,Benzinga reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's price target indicates a potential upside of 13.64% from the company's previous close.

A number of other research firms have also recently commented on STGW. Wall Street Zen cut Stagwell from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 2nd. Weiss Ratings lowered shares of Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Craig Hallum set a $8.00 price objective on shares of Stagwell and gave the stock 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 report on Tuesday, May 5th. Finally, Zacks Research upgraded shares of Stagwell from a "strong sell" rating to a "hold" rating in a research report on Friday, June 5th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Stagwell has a consensus rating of "Hold" and an average price target of $7.80.

Stagwell Stock Performance

STGW stock opened at $7.04 on Monday. Stagwell has a 52-week low of $4.28 and a 52-week high of $7.52. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 1.99. The firm has a market cap of $1.74 billion, a P/E ratio of 100.57 and a beta of 1.29. The company's 50-day simple moving average is $6.66 and its 200-day simple moving average is $5.99.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its quarterly earnings results 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). The business had revenue of $704.14 million during the quarter, compared to analysts' expectations of $700.48 million. Stagwell had a net margin of 0.64% and a return on equity of 24.12%. Stagwell's revenue for the quarter was up 8.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.12 EPS. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. As a group, equities analysts forecast that Stagwell will post 0.86 EPS for the current fiscal year.

Insider Transactions at Stagwell

In other news, Director Bradley J. Gross sold 2,163,790 shares of the firm's stock in a transaction dated 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Mark Jeffery Penn bought 20,000 shares of the company's stock in a transaction 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 completion of the acquisition, the chief executive officer owned 23,034,990 shares in the company, valued at $135,445,741.20. This represents a 0.09% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 11.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Stagwell

A number of hedge funds have recently modified their holdings of the company. JPMorgan Chase & Co. increased its holdings in shares of Stagwell by 54.1% during the 4th quarter. JPMorgan Chase & Co. now owns 2,676,532 shares of the company's stock worth $13,088,000 after buying an additional 939,888 shares during the last quarter. Dimensional Fund Advisors LP grew its position in Stagwell by 22.5% in the first quarter. Dimensional Fund Advisors LP now owns 5,035,320 shares of the company's stock worth $31,671,000 after acquiring an additional 923,771 shares during the period. Hotchkis & Wiley Capital Management LLC grew its position in Stagwell by 4.6% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 21,034,577 shares of the company's stock worth $118,425,000 after acquiring an additional 920,431 shares during the period. AQR Capital Management LLC grew its position in Stagwell by 255.4% in the fourth quarter. AQR Capital Management LLC now owns 946,033 shares of the company's stock worth $4,626,000 after acquiring an additional 679,874 shares during the period. Finally, My Personal CFO LLC acquired a new stake in Stagwell during the fourth quarter worth $2,889,000. Hedge funds and other institutional investors own 35.61% of the company's stock.

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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