Stagwell (NASDAQ:STGW) Receives Sell (E+) Rating from Weiss Ratings

Key Points

• Stagwell's stock has been reissued a "sell (E+)" rating by Weiss Ratings, with varied ratings from other firms, leading to an average rating of "Hold" and a target price of $8.17.
• The company's recent quarterly earnings reported $0.17 EPS, missing expectations, though revenue was above forecasts at $706.82 million, marking a 5.3% year-over-year increase.
• Institutional investors own 35.61% of Stagwell's stock, with notable increases in holdings by Vanguard and Boston Partners in recent quarters.

Stagwell (NASDAQ:STGW - Get Free Report)'s stock had its "sell (e+)" rating reissued by equities researchers at Weiss Ratings in a report released on Wednesday,Weiss Ratings reports.

A number of other research firms have also issued reports on STGW. Morgan Stanley reduced their price target on shares of Stagwell from $8.00 to $7.00 and set an "equal weight" rating for the company in a research report on Friday, August 1st. Rosenblatt Securities reaffirmed a "buy" rating and set a $10.00 price objective on shares of Stagwell in a research report on Monday, July 28th. Wall Street Zen lowered shares of Stagwell from a "buy" rating to a "hold" rating in a research report on Friday, August 22nd. Zacks Research raised shares of Stagwell from a "strong sell" rating to a "hold" rating in a research report on Monday, September 1st. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $6.36 price objective on shares of Stagwell in a research report on Tuesday, July 22nd. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $8.17.

Stagwell Price Performance

NASDAQ STGW opened at $5.50 on Wednesday. The company has a 50 day simple moving average of $5.50 and a 200-day simple moving average of $5.21. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.86 and a quick ratio of 0.86. The firm has a market capitalization of $1.42 billion, a price-to-earnings ratio of 11.66 and a beta of 1.36. Stagwell has a 52-week low of $4.03 and a 52-week high of $8.18.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.02). The company had revenue of $706.82 million during the quarter, compared to analysts' expectations of $696.03 million. Stagwell had a positive return on equity of 14.54% and a negative net margin of 0.06%.Stagwell's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same period last year, the company earned $0.14 earnings per share. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. Equities research analysts predict that Stagwell will post 0.59 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Stagwell

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in Stagwell by 2.8% during the first quarter. Vanguard Group Inc. now owns 5,548,288 shares of the company's stock valued at $33,567,000 after purchasing an additional 149,020 shares during the last quarter. Boston Partners grew its holdings in Stagwell by 40.9% during the second quarter. Boston Partners now owns 3,273,852 shares of the company's stock valued at $15,515,000 after purchasing an additional 950,913 shares during the last quarter. Geode Capital Management LLC grew its holdings in Stagwell by 23.6% during the second quarter. Geode Capital Management LLC now owns 2,852,617 shares of the company's stock valued at $12,838,000 after purchasing an additional 544,464 shares during the last quarter. ABLE Financial Group LLC acquired a new position in Stagwell during the second quarter valued at approximately $10,001,000. Finally, Penn Capital Management Company LLC grew its holdings in Stagwell by 24.8% during the first quarter. Penn Capital Management Company LLC now owns 2,084,525 shares of the company's stock valued at $12,646,000 after purchasing an additional 413,597 shares during the last quarter. Institutional investors and hedge funds own 35.61% of the company's stock.

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.

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