Stagwell (NASDAQ:STGW) Reaches New 1-Year Low - What's Next?

Stagwell Inc. (NASDAQ:STGW - Get Free Report)'s share price hit a new 52-week low during trading on Friday . The company traded as low as $4.58 and last traded at $4.60, with a volume of 507874 shares traded. The stock had previously closed at $4.84.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on STGW shares. Wells Fargo & Company decreased their price target on Stagwell from $9.00 to $8.00 and set an "overweight" rating on the stock in a research note on Monday, May 12th. Benchmark cut Stagwell from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 9th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $10.00 price target on shares of Stagwell in a research note on Thursday, April 3rd. Finally, Needham & Company LLC reissued a "buy" rating and set a $9.00 target price on shares of Stagwell in a research note on Thursday, April 3rd. Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, Stagwell currently has an average rating of "Moderate Buy" and an average price target of $8.60.

Stagwell Stock Down 6.0%

The company has a debt-to-equity ratio of 1.97, a current ratio of 0.95 and a quick ratio of 0.95. The stock has a market capitalization of $1.22 billion, a PE ratio of -455.00 and a beta of 1.51. The company has a 50 day moving average price of $5.34 and a 200-day moving average price of $6.22.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.05). The business had revenue of $651.74 million for the quarter, compared to analysts' expectations of $686.46 million. Stagwell had a net margin of 0.01% and a return on equity of 8.03%. Stagwell's quarterly revenue was down 2.7% on a year-over-year basis. During the same period last year, the firm posted $0.16 earnings per share. As a group, analysts forecast that Stagwell Inc. will post 0.59 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Mark Jeffery Penn purchased 10,000 shares of Stagwell stock in a transaction that occurred on Wednesday, May 21st. The shares were bought at an average cost of $4.87 per share, with a total value of $48,700.00. Following the completion of the purchase, the chief executive officer now directly owns 9,014,055 shares in the company, valued at approximately $43,898,447.85. This trade represents a 0.11% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 5.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Stagwell

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Portfolio Design Labs LLC bought a new stake in Stagwell in the fourth quarter worth $271,000. Principal Financial Group Inc. boosted its holdings in Stagwell by 7.3% in the fourth quarter. Principal Financial Group Inc. now owns 34,935 shares of the company's stock worth $230,000 after acquiring an additional 2,378 shares in the last quarter. New York State Common Retirement Fund boosted its holdings in Stagwell by 0.4% in the fourth quarter. New York State Common Retirement Fund now owns 1,612,333 shares of the company's stock worth $10,609,000 after acquiring an additional 6,992 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Stagwell by 0.8% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 800,703 shares of the company's stock worth $5,269,000 after acquiring an additional 6,742 shares in the last quarter. Finally, Victory Capital Management Inc. boosted its holdings in Stagwell by 185.7% in the fourth quarter. Victory Capital Management Inc. now owns 38,735 shares of the company's stock worth $255,000 after acquiring an additional 25,177 shares in the last quarter. 35.61% of the stock is owned by hedge funds and other institutional investors.

About Stagwell

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.