Stagwell (NASDAQ:STGW) Releases FY 2025 Earnings Guidance

Key Points

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Stagwell (NASDAQ:STGW - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.750-0.880 for the period, compared to the consensus estimate of 0.776. The company issued revenue guidance of $3.1 billion-$3.1 billion, compared to the consensus revenue estimate of $2.9 billion.

Stagwell Stock Up 0.7%

STGW traded up $0.04 during trading hours on Monday, hitting $5.62. 1,857,701 shares of the company's stock were exchanged, compared to its average volume of 1,589,857. Stagwell has a 12-month low of $4.03 and a 12-month high of $8.18. The firm has a 50 day moving average of $4.72 and a 200 day moving average of $5.47. The firm has a market cap of $1.50 billion, a P/E ratio of 11.87 and a beta of 1.41. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 1.88.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.02). Stagwell had a positive return on equity of 14.56% and a negative net margin of 0.06%. The business had revenue of $706.82 million for the quarter, compared to analysts' expectations of $696.03 million. During the same period in the previous year, the company earned $0.14 earnings per share. Stagwell's quarterly revenue was up 5.3% on a year-over-year basis. Analysts predict that Stagwell will post 0.59 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Benchmark downgraded shares of Stagwell from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 9th. Wall Street Zen raised shares of Stagwell from a "hold" rating to a "buy" rating in a research report on Saturday. Needham & Company LLC reaffirmed a "buy" rating and issued a $6.36 target price on shares of Stagwell in a research report on Tuesday, July 22nd. Rosenblatt Securities reaffirmed a "buy" rating and issued a $10.00 target price on shares of Stagwell in a research report on Monday, July 28th. Finally, Morgan Stanley dropped their target price on shares of Stagwell from $8.00 to $7.00 and set an "equal weight" rating on the stock in a research report on Friday. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $8.17.

Insiders Place Their Bets

In other news, Director Charlene Barshefsky bought 24,350 shares of Stagwell stock in a transaction dated Wednesday, June 4th. The stock was bought at an average price of $4.30 per share, for a total transaction of $104,705.00. Following the purchase, the director owned 185,316 shares of the company's stock, valued at approximately $796,858.80. The trade was a 15.13% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Eli Samaha bought 425,757 shares of Stagwell stock in a transaction dated Wednesday, June 4th. The stock was purchased at an average price of $4.27 per share, with a total value of $1,817,982.39. Following the purchase, the director directly owned 7,774,322 shares in the company, valued at approximately $33,196,354.94. This trade represents a 5.79% increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders have acquired 702,193 shares of company stock valued at $3,044,496. Insiders own 3.80% of the company's stock.

Institutional Trading of Stagwell

Several hedge funds have recently made changes to their positions in the company. Jane Street Group LLC lifted its stake in shares of 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 acquiring an additional 32,546 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Stagwell by 6.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,193 shares of the company's stock worth $316,000 after acquiring an additional 3,249 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Stagwell in the 1st quarter worth $137,000. Finally, AQR Capital Management LLC acquired a new stake in shares of Stagwell in the 1st quarter worth $74,000. 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.