Stagwell (NASDAQ:STGW) Upgraded at Wall Street Zen

Key Points

• Analyst sentiment improved: Wall Street Zen upgraded Stagwell to “strong buy,” while Needham and Wells Fargo raised their price targets to $10. MarketBeat shows a consensus rating of “Moderate Buy” and an average target price of $9.40.
• Quarterly results beat expectations: Stagwell reported adjusted EPS of $0.25 versus the $0.19 consensus estimate, while revenue rose 11.2% year over year to $786.31 million, exceeding forecasts.
• Outlook is mixed: Management provided fiscal 2026 EPS guidance of $1.03–$1.17, but the company continues to report a small GAAP net loss and carries a debt-to-equity ratio of 1.99. Shares opened at $8.45, near their 12-month high of $8.50.

Stagwell (NASDAQ:STGW - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report issued on Saturday.

STGW has been the topic of a number of other research reports. Needham & Company LLC lifted their price target on shares of Stagwell from $8.00 to $10.00 and gave the stock a "buy" rating in a research note on Thursday. Wells Fargo & Company upped their target price on shares of Stagwell from $8.00 to $10.00 and gave the company an "overweight" rating in a research note on Friday. Zacks Research upgraded shares of Stagwell from a "strong sell" rating to a "hold" rating in a research note on Friday, June 5th. Rosenblatt Securities reaffirmed a "buy" rating and set a $9.00 price objective on shares of Stagwell in a report on Tuesday, May 5th. Finally, Weiss Ratings lowered Stagwell from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Stagwell presently has an average rating of "Moderate Buy" and a consensus target price of $9.40.

Stagwell Stock Down 0.5%

Shares of STGW stock opened at $8.45 on Friday. Stagwell has a twelve month low of $4.28 and a twelve month high of $8.50. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.83 and a current ratio of 0.83. The stock's 50 day simple moving average is $7.19 and its 200 day simple moving average is $6.41. The company has a market capitalization of $2.09 billion, a price-to-earnings ratio of 140.83 and a beta of 1.26.

Stagwell (NASDAQ:STGW - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.19 by $0.06. The company had revenue of $786.31 million for the quarter, compared to the consensus estimate of $754.56 million. Stagwell had a return on equity of 26.66% and a net margin of 0.53%.The company's revenue for the quarter was up 11.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.17 EPS. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. As a group, research analysts predict that Stagwell will post 0.86 EPS for the current year.

Insider Transactions at Stagwell

In other Stagwell news, Director Bradley J. Gross sold 2,163,790 shares of the business's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $6.04, for a total transaction of $13,069,291.60. Following the completion of the sale, the director directly owned 8,789 shares of the company's stock, valued at approximately $53,085.56. The trade was a 99.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Mark Jeffery Penn purchased 20,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average cost of $5.88 per share, with a total value of $117,600.00. Following the completion of the purchase, the chief executive officer owned 23,034,990 shares of the company's stock, valued at $135,445,741.20. The trade was a 0.09% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 11.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Stagwell

A number of hedge funds and other institutional investors have recently made changes to their positions in STGW. Kestra Advisory Services LLC acquired a new stake in Stagwell during the 4th quarter worth $26,000. Clearstead Advisors LLC grew its stake in Stagwell by 186.2% in the fourth 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. Tower Research Capital LLC TRC increased its holdings in shares of Stagwell by 311.8% in the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company's stock worth $49,000 after acquiring an additional 8,170 shares in the last quarter. Inceptionr LLC bought a new stake in shares of Stagwell in the fourth quarter worth about $50,000. Finally, New York State Teachers Retirement System acquired a new stake in shares of Stagwell during the fourth quarter worth about $52,000. 35.61% of the stock is owned by institutional investors.

Key Stories Impacting Stagwell

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Analyst price targets raised: Wells Fargo upgraded its stance to “overweight” and lifted its price target from $8 to $10. Needham also raised its target to $10 and assigned a “buy” rating, implying approximately 19% upside from the referenced share price. Benzinga analyst rating reports
• Positive Sentiment: Adjusted Q2 earnings exceeded expectations: Stagwell reported adjusted EPS of $0.25, above the $0.17 analyst consensus and up from $0.17 a year earlier. Revenue rose 11% year over year to $786 million, surpassing the $755 million consensus estimate. Stagwell Q2 earnings and revenues article
• Positive Sentiment: Profitability and demand trends improved: Adjusted EBITDA increased 15% to $109 million, adjusted EPS grew 39%, and digital transformation organic net revenue climbed 18%. Record quarterly net new business of $171 million and $540 million over the last 12 months point to healthy client demand. Stagwell second-quarter results
• Neutral Sentiment: Management raised full-year 2026 adjusted EPS guidance to $1.03-$1.17 from the prior outlook, above the $1.01 consensus estimate. The company’s earnings presentation provides additional operating detail. Stagwell 2026 Q2 earnings presentation
• Negative Sentiment: Revenue outlook trails expectations: Full-year 2026 revenue guidance of $3.0 billion-$3.1 billion is below the approximately $3.2 billion consensus estimate, potentially limiting the benefit of the stronger EPS outlook.
• Negative Sentiment: Despite adjusted earnings growth, Stagwell posted a $8 million quarterly net loss attributable to common shareholders, compared with a $5 million loss a year earlier, underscoring continued GAAP profitability risk.

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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