Stagwell (NASDAQ:STGW) Releases 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 earnings per share (EPS) guidance of 0.750-0.880 for the period, compared to the consensus 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.

Stagwell Trading Up 4.7%

NASDAQ:STGW opened at $4.49 on Friday. The business's 50-day simple moving average is $5.17 and its 200 day simple moving average is $6.13. Stagwell has a one year low of $4.03 and a one year high of $8.18. The stock has a market cap of $1.20 billion, a price-to-earnings ratio of -449.00 and a beta of 1.44. 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 (NASDAQ:STGW - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $651.74 million for the quarter, compared to analyst estimates of $686.46 million. Stagwell had a net margin of 0.01% and a return on equity of 8.03%. The company's quarterly revenue was down 2.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.16 EPS. As a group, sell-side analysts predict that Stagwell will post 0.59 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms recently weighed in on STGW. Rosenblatt Securities reiterated a "buy" rating and set a $10.00 price objective on shares of Stagwell in a research note on Thursday, April 3rd. Wells Fargo & Company dropped their price target on Stagwell from $9.00 to $8.00 and set an "overweight" rating on the stock in a research report on Monday, May 12th. Needham & Company LLC reiterated a "buy" rating and set a $9.00 price target on shares of Stagwell in a research report on Thursday, April 3rd. Finally, Benchmark lowered Stagwell from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 9th. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $8.60.

Insider Activity at Stagwell

In related news, Director Charlene Barshefsky bought 24,350 shares of the stock in a transaction on Wednesday, June 4th. The shares were purchased at an average price of $4.30 per share, with a total value of $104,705.00. Following the purchase, the director now owns 185,316 shares in the company, valued at approximately $796,858.80. This represents a 15.13% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Eli Samaha acquired 240,000 shares of the stock in a transaction that occurred on Thursday, June 5th. The shares were bought at an average price of $4.43 per share, for a total transaction of $1,063,200.00. Following the purchase, the director now directly owns 8,014,322 shares of the company's stock, valued at approximately $35,503,446.46. This trade represents a 3.09% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 702,193 shares of company stock worth $3,044,496 in the last three months. 5.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

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

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.

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