Stagwell (NASDAQ:STGW) Trading Down 5.9% - What's Next?

Key Points

• Stagwell Inc. shares fell by 5.9% during mid-day trading, reaching a low of $5.06 compared to the previous close of $5.35.
• Brokerages have mixed ratings on Stagwell, with an average rating of "Hold" and a consensus price target of $8.17, while Weiss Ratings maintains a "sell" rating.
• The company reported $0.17 EPS in its latest earnings, missing the consensus estimate of $0.19, though revenue of $706.82 million exceeded expectations.

Stagwell Inc. (NASDAQ:STGW - Get Free Report) shares dropped 5.9% during mid-day trading on Thursday . The stock traded as low as $5.06 and last traded at $5.04. Approximately 635,143 shares were traded during trading, a decline of 39% from the average daily volume of 1,044,209 shares. The stock had previously closed at $5.35.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on STGW. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Stagwell in a report on Wednesday, October 8th. Zacks Research raised shares of Stagwell from a "strong sell" rating to a "hold" rating in a report on Monday, September 1st. Needham & Company LLC reaffirmed a "buy" rating and issued a $6.36 target price on shares of Stagwell in a report on Tuesday, July 22nd. Morgan Stanley reduced their target price on shares of Stagwell from $8.00 to $7.00 and set an "equal weight" rating on the stock in a report on Friday, August 1st. Finally, Wall Street Zen cut shares of Stagwell from a "buy" rating to a "hold" rating in a report on Friday, August 22nd. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $8.17.

Stagwell Price Performance

The company has a market capitalization of $1.31 billion, a PE ratio of 11.53 and a beta of 1.36. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.86 and a quick ratio of 0.86. The company's 50 day simple moving average is $5.42 and its 200 day simple moving average is $5.16.

Stagwell (NASDAQ:STGW - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.19 by ($0.02). The company had revenue of $706.82 million during the quarter, compared to analysts' expectations of $696.03 million. Stagwell had a negative net margin of 0.06% and a positive return on equity of 14.54%. The business'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 earned $0.14 earnings per share. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. As a group, sell-side analysts predict that Stagwell Inc. will post 0.59 earnings per share for the current year.

Hedge Funds Weigh In On Stagwell

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its position in shares of Stagwell by 2.8% during the first quarter. Vanguard Group Inc. now owns 5,548,288 shares of the company's stock worth $33,567,000 after acquiring an additional 149,020 shares during the last quarter. Boston Partners grew its position in shares of Stagwell by 40.9% during the second quarter. Boston Partners now owns 3,273,852 shares of the company's stock worth $15,515,000 after acquiring an additional 950,913 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Stagwell by 23.6% during the second quarter. Geode Capital Management LLC now owns 2,852,617 shares of the company's stock worth $12,838,000 after acquiring an additional 544,464 shares during the last quarter. ABLE Financial Group LLC purchased a new position in shares of Stagwell during the second quarter worth approximately $10,001,000. Finally, Penn Capital Management Company LLC grew its position in shares of 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 during the last quarter. 35.61% of the stock is currently owned by hedge funds and other institutional investors.

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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