Stagwell (NASDAQ:STGW) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

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) released its quarterly earnings data on Thursday. The company reported $0.17 earnings per share for the quarter, missing the consensus estimate of $0.19 by ($0.02), Briefing.com reports. The company had revenue of $706.82 million during the quarter, compared to the consensus estimate of $696.03 million. Stagwell had a negative net margin of 0.06% and a positive return on equity of 14.56%. The company's revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.14 earnings per share. Stagwell updated its FY 2025 guidance to 0.750-0.880 EPS.

Stagwell Stock Down 2.6%

Shares of NASDAQ STGW traded down $0.15 during mid-day trading on Friday, hitting $5.58. The company had a trading volume of 2,910,574 shares, compared to its average volume of 1,444,325. Stagwell has a one year low of $4.03 and a one year high of $8.18. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 1.88. The company has a market capitalization of $1.49 billion, a PE ratio of 12.19 and a beta of 1.41. The firm has a 50-day simple moving average of $4.72 and a two-hundred day simple moving average of $5.49.

Insiders Place Their Bets

In other Stagwell news, CEO Mark Jeffery Penn purchased 10,000 shares of the stock in a transaction on Wednesday, May 21st. The shares were purchased at an average price of $4.87 per share, with a total value of $48,700.00. Following the completion of the transaction, the chief executive officer directly owned 9,014,055 shares in the company, valued at $43,898,447.85. This represents a 0.11% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Charlene Barshefsky purchased 24,350 shares of the stock in a transaction on Wednesday, June 4th. The shares were acquired at an average cost of $4.30 per share, for a total transaction of $104,705.00. Following the transaction, 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 disclosure for this purchase can be found here. Insiders have acquired a total of 702,193 shares of company stock valued at $3,044,496 over the last 90 days. 5.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Stagwell

A number of institutional investors have recently made changes to their positions in STGW. AQR Capital Management LLC bought a new stake in shares of Stagwell during the first quarter worth approximately $74,000. Dynamic Technology Lab Private Ltd acquired a new position in Stagwell during the first quarter valued at approximately $137,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Stagwell by 6.6% during 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. Finally, Jane Street Group LLC increased its holdings 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 buying an additional 32,546 shares in the last quarter. Institutional investors own 35.61% of the company's stock.

Analyst Upgrades and Downgrades

STGW has been the topic of a number of research analyst reports. Morgan Stanley decreased their price target on Stagwell from $8.00 to $7.00 and set an "equal weight" rating on the stock in a research report on Friday. Benchmark downgraded Stagwell from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 9th. Needham & Company LLC reissued a "buy" rating and issued a $6.36 price target on shares of Stagwell in a research note on Tuesday, July 22nd. Wells Fargo & Company dropped their price objective on Stagwell from $9.00 to $8.00 and set an "overweight" rating on the stock in a research note on Monday, May 12th. Finally, Wall Street Zen raised Stagwell from a "hold" rating to a "buy" rating in a research note on Saturday. Two research analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. Based on data from MarketBeat, Stagwell presently has an average rating of "Moderate Buy" and an average target price of $8.17.

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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