Stagwell (NASDAQ:STGW) Updates FY 2025 Earnings Guidance

Stagwell (NASDAQ:STGW - Get Free Report) issued an update on its FY 2025 earnings guidance on Saturday morning. The company provided EPS guidance of 0.750-0.880 for the period, compared to the consensus EPS estimate of 0.840. The company issued revenue guidance of $3.1 billion-$3.1 billion, compared to the consensus revenue estimate of $3.0 billion.

Analysts Set New Price Targets

STGW has been the subject of a number of analyst reports. Needham & Company LLC reiterated a "buy" rating and set a $9.00 target price on shares of Stagwell in a report on Thursday, April 3rd. Rosenblatt Securities reaffirmed a "buy" rating and set a $10.00 price target on shares of Stagwell in a research report on Thursday, April 3rd. Benchmark lowered Stagwell from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 9th. Finally, Wells Fargo & Company reduced their target price on Stagwell from $9.00 to $8.00 and set an "overweight" rating on the stock in a research note on Monday, May 12th. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $8.60.

Stagwell Trading Up 5.3%

Shares of NASDAQ STGW traded up $0.24 during midday trading on Tuesday, hitting $4.79. 2,653,308 shares of the company traded hands, compared to its average volume of 642,255. The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.95 and a current ratio of 0.95. Stagwell has a 12-month low of $4.03 and a 12-month high of $8.18. The stock has a 50-day moving average price of $5.12 and a 200 day moving average price of $6.08. The firm has a market cap of $1.28 billion, a P/E ratio of -479.00 and a beta of 1.44.

Stagwell (NASDAQ:STGW - Get Free Report) last announced 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). Stagwell had a return on equity of 8.03% and a net margin of 0.01%. The firm had revenue of $651.74 million during the quarter, compared to the consensus estimate of $686.46 million. During the same period in the prior year, the company posted $0.16 EPS. The firm's revenue was down 2.7% on a year-over-year basis. As a group, analysts expect that Stagwell will post 0.59 earnings per share for the current year.

Insider Buying and Selling at Stagwell

In other news, 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 bought at an average price of $4.87 per share, for a total transaction of $48,700.00. Following 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Eli Samaha purchased 425,757 shares of the stock in a transaction dated Wednesday, June 4th. The shares were acquired at an average cost of $4.27 per share, for a total transaction of $1,817,982.39. Following the completion of the acquisition, the director now owns 7,774,322 shares of the company's stock, valued at approximately $33,196,354.94. This represents a 5.79% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 702,193 shares of company stock valued at $3,044,496. 5.60% of the stock is currently owned by company insiders.

Institutional Trading of Stagwell

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Jane Street Group LLC grew its position in shares of Stagwell by 36.0% during the first quarter. Jane Street Group LLC now owns 123,000 shares of the company's stock worth $744,000 after purchasing an additional 32,546 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in Stagwell in the 1st quarter worth approximately $137,000. AQR Capital Management LLC bought a new position in Stagwell in the 1st quarter worth approximately $74,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Stagwell by 6.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,193 shares of the company's stock valued at $316,000 after buying an additional 3,249 shares in the last quarter. Hedge funds and other institutional investors own 35.61% of the company's stock.

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.