Stagwell (NASDAQ:STGW) Shares Gap Up - What's Next?

Key Points

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Stagwell Inc. (NASDAQ:STGW - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $5.16, but opened at $5.58. Stagwell shares last traded at $5.93, with a volume of 715,307 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on STGW shares. Wells Fargo & Company lowered their target price on shares of Stagwell from $9.00 to $8.00 and set an "overweight" rating on the stock in a research note on Monday, May 12th. Needham & Company LLC reaffirmed a "buy" rating and issued a $6.36 price target on shares of Stagwell in a research note on Tuesday, July 22nd. Rosenblatt Securities reaffirmed a "buy" rating and issued a $10.00 price target on shares of Stagwell in a research note on Monday. Finally, Benchmark lowered shares of Stagwell from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 9th.

Stagwell Trading Up 10.0%

The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 1.88. The company has a fifty day moving average of $4.68 and a two-hundred day moving average of $5.49. The stock has a market capitalization of $1.52 billion, a price-to-earnings ratio of -567.40 and a beta of 1.39.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The company reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.17 by ($0.05). The company had revenue of $651.74 million for the quarter, compared to analyst estimates of $686.46 million. Stagwell had a net margin of 0.02% and a return on equity of 15.38%. The firm's revenue was down 2.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.16 EPS. On average, research analysts expect that Stagwell Inc. will post 0.59 EPS for the current year.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. ABLE Financial Group LLC bought a new stake in shares of Stagwell during the 2nd quarter worth about $10,001,000. JPMorgan Chase & Co. grew its stake in shares of Stagwell by 2,968.0% during the fourth quarter. JPMorgan Chase & Co. now owns 1,193,355 shares of the company's stock worth $7,852,000 after purchasing an additional 1,154,458 shares during the period. Penn Capital Management Company LLC lifted its holdings in Stagwell by 24.8% during the first quarter. Penn Capital Management Company LLC now owns 2,084,525 shares of the company's stock worth $12,646,000 after acquiring an additional 413,597 shares in the last quarter. Harbor Capital Advisors Inc. lifted its holdings in Stagwell by 30.2% during the first quarter. Harbor Capital Advisors Inc. now owns 1,648,791 shares of the company's stock worth $9,975,000 after acquiring an additional 382,008 shares in the last quarter. Finally, 683 Capital Management LLC lifted its holdings in shares of Stagwell by 94.8% in the fourth quarter. 683 Capital Management LLC now owns 750,000 shares of the company's stock valued at $4,935,000 after purchasing an additional 365,000 shares in the last quarter. Hedge funds and other institutional investors 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.

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