Stagwell (NASDAQ:STGW) Shares Up 7% - Here's What Happened

Key Points

• Stagwell shares jumped about 7% in Monday trading, reaching as high as $6.46 before settling near $6.48, on volume below its average session level.
• Recent analyst commentary has been mixed: while Rosenblatt and B. Riley kept buy ratings, several firms issued downgrades, leaving the stock with an overall Hold consensus and a $7.65 price target.
• The company recently reported better-than-expected revenue of $704.1 million but missed EPS estimates by a penny, while insider activity showed a large director sale and a smaller CEO share purchase.

Stagwell Inc. (NASDAQ:STGW - Get Free Report) shares shot up 7% during trading on Monday . The company traded as high as $6.46 and last traded at $6.4750. 968,424 shares were traded during mid-day trading, a decline of 46% from the average session volume of 1,779,204 shares. The stock had previously closed at $6.05.

Analyst Upgrades and Downgrades

Several research firms recently commented on STGW. Rosenblatt Securities reaffirmed a "buy" rating and set a $9.00 target price on shares of Stagwell in a report on Tuesday, May 5th. B. Riley Financial lowered their price target on shares of Stagwell from $9.00 to $7.00 and set a "buy" rating on the stock in a report on Friday, March 6th. Weiss Ratings downgraded Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, May 4th. Wall Street Zen downgraded Stagwell from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 2nd. Finally, Zacks Research downgraded Stagwell from a "hold" rating to a "strong sell" rating in a research report on Thursday, May 7th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $7.65.

Stagwell Trading Up 4.5%

The stock has a market capitalization of $1.57 billion, a PE ratio of 90.36 and a beta of 1.27. The company has a debt-to-equity ratio of 1.99, a current ratio of 0.83 and a quick ratio of 0.83. The company's 50 day moving average price is $6.34 and its two-hundred day moving average price is $5.66.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.17 EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.01). The company had revenue of $704.14 million for the quarter, compared to analysts' expectations of $700.48 million. Stagwell had a return on equity of 24.12% and a net margin of 0.64%.The business's quarterly revenue was up 8.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.12 EPS. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. As a group, analysts expect that Stagwell Inc. will post 0.86 earnings per share for the current year.

Insider Transactions at Stagwell

In other Stagwell news, Director Bradley J. Gross sold 2,163,790 shares of Stagwell stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $6.04, for a total transaction of $13,069,291.60. Following the transaction, the director directly owned 8,789 shares of the company's stock, valued at $53,085.56. The trade was a 99.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Mark Jeffery Penn bought 20,000 shares of Stagwell stock in a transaction on Wednesday, May 13th. The stock was acquired at an average price of $5.88 per share, for a total transaction of $117,600.00. Following the transaction, the chief executive officer directly owned 23,034,990 shares of the company's stock, valued at approximately $135,445,741.20. This trade represents a 0.09% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 11.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Stagwell

A number of institutional investors and hedge funds have recently added to or reduced their stakes in STGW. Campbell & CO Investment Adviser LLC raised its stake in shares of Stagwell by 3.2% in the 3rd quarter. Campbell & CO Investment Adviser LLC now owns 68,821 shares of the company's stock valued at $387,000 after acquiring an additional 2,118 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised 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 valued at $316,000 after acquiring an additional 3,249 shares during the period. Clearstead Advisors LLC raised its stake in shares of Stagwell by 186.2% in the 4th quarter. Clearstead Advisors LLC now owns 7,020 shares of the company's stock valued at $34,000 after acquiring an additional 4,567 shares during the period. Arizona State Retirement System raised its stake in shares of Stagwell by 17.0% in the 4th quarter. Arizona State Retirement System now owns 32,401 shares of the company's stock valued at $158,000 after acquiring an additional 4,702 shares during the period. Finally, Osaic Holdings Inc. raised its stake in shares of Stagwell by 2.6% in the 4th quarter. Osaic Holdings Inc. now owns 195,288 shares of the company's stock valued at $955,000 after acquiring an additional 4,990 shares during the period. Hedge funds and other institutional investors own 35.61% of the company's stock.

Stagwell Company Profile

Stagwell Inc is a modern marketing and communications network that partners with global organizations to drive brand growth through data-driven insights and creative solutions. The company operates a diversified portfolio of specialized agencies and technology platforms, offering services that span digital marketing, advertising, public relations, consumer and market research, social media strategy, and commerce consulting. By integrating research, creative, media, and technology under a unified network, Stagwell aims to deliver end-to-end marketing solutions tailored to the evolving needs of clients in sectors such as technology, healthcare, consumer goods, and financial services.

Founded in 2015 by long-time political strategist and pollster Mark Penn, Stagwell has expanded organically and through strategic acquisitions to build capabilities across the marketing value chain.

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