Stagwell (NASDAQ:STGW) Trading Down 5.7% - Should You Sell?

Shares of Stagwell Inc. (NASDAQ:STGW - Get Free Report) fell 5.7% during mid-day trading on Friday . The stock traded as low as $4.59 and last traded at $4.56. 320,258 shares changed hands during trading, a decline of 51% from the average session volume of 652,048 shares. The stock had previously closed at $4.83.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on STGW shares. Wells Fargo & Company cut their price target on Stagwell from $9.00 to $8.00 and set an "overweight" rating for the company in a report on Monday, May 12th. Rosenblatt Securities reissued a "buy" rating and set a $10.00 price target on shares of Stagwell in a research report on Thursday, April 3rd. Benchmark downgraded Stagwell from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 9th. Finally, Needham & Company LLC reissued a "buy" rating and set a $9.00 price target on shares of Stagwell in a research report on Thursday, April 3rd. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $8.60.

Stagwell Stock Performance

The stock has a 50-day simple moving average of $5.10 and a 200-day simple moving average of $6.02. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.95 and a quick ratio of 0.95. The stock has a market cap of $1.17 billion, a PE ratio of -438.00 and a beta of 1.44.

Stagwell (NASDAQ:STGW - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported $0.12 earnings per share 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 company had revenue of $651.74 million during the quarter, compared to analysts' expectations of $686.46 million. During the same period in the previous year, the company earned $0.16 EPS. Stagwell's quarterly revenue was down 2.7% on a year-over-year basis. Equities analysts predict that Stagwell Inc. will post 0.59 earnings per share for the current fiscal year.

Insider Transactions at Stagwell

In other Stagwell news, Director Charlene Barshefsky purchased 24,350 shares of the business's stock in a transaction that occurred on Wednesday, June 4th. The shares were acquired at an average price of $4.30 per share, for a total transaction of $104,705.00. Following the completion of the purchase, the director now owns 185,316 shares in the company, valued at $796,858.80. The trade was a 15.13% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Mark Jeffery Penn purchased 10,000 shares of the business's stock in a transaction that occurred on Wednesday, May 21st. The stock was acquired 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 owns 9,014,055 shares of the company's stock, valued at approximately $43,898,447.85. This represents a 0.11% increase in their position. The disclosure for this purchase can be found here. Insiders purchased 702,193 shares of company stock valued at $3,044,496 over the last quarter. Company insiders own 5.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Stagwell by 47.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 305,467 shares of the company's stock worth $2,010,000 after acquiring an additional 98,367 shares in the last quarter. Principal Financial Group Inc. raised its stake in Stagwell by 7.3% during the fourth quarter. Principal Financial Group Inc. now owns 34,935 shares of the company's stock valued at $230,000 after buying an additional 2,378 shares in the last quarter. Prudential Financial Inc. acquired a new stake in Stagwell during the fourth quarter valued at approximately $442,000. BNP Paribas Financial Markets acquired a new stake in Stagwell during the fourth quarter valued at approximately $75,000. Finally, KLP Kapitalforvaltning AS acquired a new stake in Stagwell during the fourth quarter valued at approximately $105,000. 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.