Stagwell (NASDAQ:STGW) Trading Down 5.1% - Here's What Happened

Key Points

• Shares of Stagwell Inc. (NASDAQ: STGW) fell by 5.1%, trading at $5.29 after previously closing at $5.57, with trading volume down 56% from average levels.
• Equities analysts have mixed ratings on Stagwell, with ratings ranging from a downgrade to a "hold" by Wall Street Zen and various target prices set by others, the average consensus target price is $8.17.
• The company reported quarterly earnings of $0.17 per share, missing expectations of $0.19, but showed a revenue increase of 5.3% year-over-year, totaling $706.82 million.

Shares of Stagwell Inc. (NASDAQ:STGW - Get Free Report) were down 5.1% on Friday . The company traded as low as $5.33 and last traded at $5.29. Approximately 443,846 shares were traded during trading, a decline of 56% from the average daily volume of 1,017,016 shares. The stock had previously closed at $5.57.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on STGW shares. Wall Street Zen downgraded Stagwell from a "buy" rating to a "hold" rating in a research report on Friday, August 22nd. Zacks Research raised Stagwell from a "strong sell" rating to a "hold" rating in a research report on Monday, September 1st. Rosenblatt Securities reissued a "buy" rating and set a $10.00 target price on shares of Stagwell in a research report on Monday, July 28th. Needham & Company LLC reissued a "buy" rating and set a $6.36 target price on shares of Stagwell in a research report on Tuesday, July 22nd. Finally, Morgan Stanley decreased their target price on Stagwell from $8.00 to $7.00 and set an "equal weight" rating on the stock in a research report on Friday, August 1st. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $8.17.

Stagwell Stock Down 3.7%

The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 1.90. The business has a fifty day simple moving average of $5.33 and a two-hundred day simple moving average of $5.32. The company has a market capitalization of $1.39 billion, a price-to-earnings ratio of 11.47 and a beta of 1.47.

Stagwell (NASDAQ:STGW - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.17 earnings per share for the quarter, missing analysts' consensus estimates of $0.19 by ($0.02). The company had revenue of $706.82 million for the quarter, compared to analyst estimates of $696.03 million. Stagwell had a negative net margin of 0.06% and a positive return on equity of 14.54%. The firm's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.14 earnings per share. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. Equities analysts expect that Stagwell Inc. will post 0.59 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in shares of Stagwell by 2.8% in the first quarter. Vanguard Group Inc. now owns 5,548,288 shares of the company's stock valued at $33,567,000 after acquiring an additional 149,020 shares during the last quarter. Boston Partners raised its stake in shares of Stagwell by 40.9% in the second quarter. Boston Partners now owns 3,273,852 shares of the company's stock valued at $15,515,000 after acquiring an additional 950,913 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Stagwell by 23.6% in the second quarter. Geode Capital Management LLC now owns 2,852,617 shares of the company's stock valued at $12,838,000 after acquiring an additional 544,464 shares during the last quarter. ABLE Financial Group LLC bought a new position in shares of Stagwell in the second quarter valued at approximately $10,001,000. Finally, Penn Capital Management Company LLC raised its stake in shares of Stagwell by 24.8% in the first quarter. Penn Capital Management Company LLC now owns 2,084,525 shares of the company's stock valued at $12,646,000 after acquiring an additional 413,597 shares during the last quarter. Institutional investors own 35.61% of the company's stock.

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.

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