Stagwell's (STGW) "Buy" Rating Reaffirmed at Rosenblatt Securities

Key Points

• Rosenblatt Securities has reiterated a "buy" rating for Stagwell (NASDAQ: STGW), setting a target price of $10.00, indicating a potential upside of 85.19%.
• The company reported a net margin of 0.02% and a decrease in revenue by 2.7% year-over-year, with earnings per share of $0.12, missing estimates by $0.05.
• Insider trading activity included CEO Mark Jeffery Penn purchasing 10,000 shares, while institutional investors increased their positions in Stagwell, owning 35.61% of the stock.

Rosenblatt Securities reaffirmed their buy rating on shares of Stagwell (NASDAQ:STGW - Free Report) in a research report released on Monday,Benzinga reports. Rosenblatt Securities currently has a $10.00 price objective on the stock.

STGW has been the subject of several other reports. Wells Fargo & Company reduced their target price on Stagwell from $9.00 to $8.00 and set an "overweight" rating for the company in a research note on Monday, May 12th. Needham & Company LLC reissued a "buy" rating and set a $6.36 price target on shares of Stagwell in a report on Tuesday, July 22nd. Finally, Benchmark cut Stagwell from a "strong-buy" rating to a "hold" rating in a report on Friday, May 9th.

Stagwell Stock Up 6.9%

STGW stock traded up $0.36 during mid-day trading on Monday, reaching $5.52. The company had a trading volume of 1,731,943 shares, compared to its average volume of 1,002,841. The company has a debt-to-equity ratio of 1.88, a current ratio of 0.91 and a quick ratio of 0.91. The stock has a 50 day simple moving average of $4.68 and a two-hundred day simple moving average of $5.49. The company has a market capitalization of $1.48 billion, a price-to-earnings ratio of -551.50 and a beta of 1.39. Stagwell has a 52 week low of $4.03 and a 52 week high of $8.18.

Stagwell (NASDAQ:STGW - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.05). Stagwell had a return on equity of 15.38% and a net margin of 0.02%. The business had revenue of $651.74 million for the quarter, compared to the consensus estimate of $686.46 million. During the same quarter in the prior year, the firm posted $0.16 earnings per share. The business's revenue was down 2.7% compared to the same quarter last year. As a group, equities analysts predict that Stagwell will post 0.59 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Charlene Barshefsky acquired 24,350 shares of the company's stock in a transaction on Wednesday, June 4th. The stock was purchased at an average cost of $4.30 per share, with a total value of $104,705.00. Following the acquisition, the director directly owned 185,316 shares of the company's stock, valued at approximately $796,858.80. The trade was a 15.13% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Mark Jeffery Penn acquired 10,000 shares of the company's stock in a transaction on Wednesday, May 21st. The stock was bought at an average cost of $4.87 per share, with a total value of $48,700.00. Following the completion of the acquisition, the chief executive officer directly owned 9,014,055 shares in the company, valued at approximately $43,898,447.85. This represents a 0.11% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders bought 702,193 shares of company stock valued at $3,044,496. Insiders own 5.60% of the company's stock.

Hedge Funds Weigh In On Stagwell

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Stagwell in the 2nd quarter valued at $437,000. Concurrent Investment Advisors LLC raised its holdings in shares of Stagwell by 21.5% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 43,276 shares of the company's stock worth $195,000 after buying an additional 7,671 shares in the last quarter. Janney Montgomery Scott LLC acquired a new position in shares of Stagwell during the 2nd quarter worth $912,000. ABLE Financial Group LLC acquired a new position in shares of Stagwell during the 2nd quarter worth $10,001,000. Finally, Harbor Capital Advisors Inc. raised its holdings in shares of Stagwell by 21.9% during the 2nd quarter. Harbor Capital Advisors Inc. now owns 2,010,698 shares of the company's stock worth $9,048,000 after buying an additional 361,907 shares in the last quarter. 35.61% of the stock is owned by institutional investors and hedge funds.

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.