Stagwell (NASDAQ:STGW) Announces Quarterly Earnings Results

Key Points

• Stagwell (NASDAQ:STGW) reported earnings of $0.17 per share, missing expectations by $0.02 EPS, while revenue reached $706.82 million, exceeding the estimate by $10.79 million.
• The company's shares dropped 2.6% to $5.58 following the earnings announcement, as it faces a current ratio of 0.91 and a negative net margin of 0.06%.
• CEO Mark Jeffery Penn and Director Charlene Barshefsky recently increased their holdings in Stagwell, signaling insider confidence despite recent stock fluctuations.

Stagwell (NASDAQ:STGW - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.17 EPS for the quarter, missing analysts' consensus estimates of $0.19 by ($0.02), Briefing.com reports. The company had revenue of $706.82 million during the quarter, compared to analyst estimates of $696.03 million. Stagwell had a positive return on equity of 14.54% and a negative net margin of 0.06%. The company's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.14 earnings per share. Stagwell updated its FY 2025 guidance to 0.750-0.880 EPS.

Stagwell Stock Up 0.2%

Stagwell stock traded up $0.01 during trading hours on Wednesday, hitting $5.66. The stock had a trading volume of 707,823 shares, compared to its average volume of 1,030,343. The stock's 50-day moving average price is $4.75 and its 200-day moving average price is $5.47. Stagwell has a 12-month low of $4.03 and a 12-month high of $8.18. The stock has a market capitalization of $1.52 billion, a P/E ratio of 11.96 and a beta of 1.41. The company has a quick ratio of 0.91, a current ratio of 0.86 and a debt-to-equity ratio of 1.90.

Insider Transactions at Stagwell

In other Stagwell news, CEO Mark Jeffery Penn bought 10,000 shares of the business's stock in a transaction that occurred on Wednesday, May 21st. The stock was bought at an average cost of $4.87 per share, for a total transaction of $48,700.00. Following the completion of the transaction, the chief executive officer owned 9,014,055 shares of the company's stock, valued at $43,898,447.85. This represents a 0.11% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Eli Samaha bought 240,000 shares of the stock in a transaction dated Thursday, June 5th. The stock was bought at an average cost of $4.43 per share, for a total transaction of $1,063,200.00. Following the acquisition, the director directly owned 8,014,322 shares of the company's stock, valued at approximately $35,503,446.46. This represents a 3.09% increase in their position. The disclosure for this purchase can be found here. Insiders purchased 702,193 shares of company stock worth $3,044,496 over the last three months. 3.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Stagwell

Several institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings 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 last quarter. AQR Capital Management LLC purchased a new position in Stagwell during the 1st quarter valued at about $74,000. Dynamic Technology Lab Private Ltd purchased a new position in Stagwell during the 1st quarter valued at about $137,000. Finally, Jane Street Group LLC increased its position in Stagwell by 36.0% during the 1st quarter. Jane Street Group LLC now owns 123,000 shares of the company's stock valued at $744,000 after purchasing an additional 32,546 shares during the period. Institutional investors own 35.61% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on STGW shares. Wells Fargo & Company reduced their price objective on shares of Stagwell from $9.00 to $8.00 and set an "overweight" rating for the company in a report on Monday, May 12th. Wall Street Zen raised shares of Stagwell from a "hold" rating to a "buy" rating in a research report on Saturday. Morgan Stanley dropped their price target 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, August 1st. Rosenblatt Securities reissued a "buy" rating and set a $10.00 price target on shares of Stagwell in a research report on Monday, July 28th. Finally, Benchmark lowered shares of Stagwell from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 9th. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, Stagwell presently has an average rating of "Moderate Buy" and a consensus target price of $8.17.

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.