Wall Street Zen Downgrades Stagwell (NASDAQ:STGW) to Buy

Key Points

• Wall Street Zen downgraded Stagwell from "strong‑buy" to "buy"; overall analyst sentiment is a "Moderate Buy" with five Buy and four Hold ratings and a consensus target price of $7.96.
• Q1 showed mixed results: revenue rose ~8% to $704M and adjusted EBITDA was $90M, but adjusted EPS of $0.17 missed the $0.18 consensus and the company reported a GAAP net loss of about $13M while reiterating FY26 guidance of $0.98–$1.12 EPS.
• Market/valuation snapshot: shares opened near $6.36 (12‑month range $4.03–$7.52), market cap ~$1.61B, PE ~79.4, and institutional investors own about 35.6% of the stock.

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

Several other equities analysts also recently commented on the company. B. Riley Financial decreased their target price on Stagwell from $9.00 to $7.00 and set a "buy" rating on the stock in a research report on Friday, March 6th. Craig Hallum set a $8.00 price target on Stagwell and gave the stock a "buy" rating in a research report on Wednesday, March 11th. Zacks Research downgraded Stagwell from a "strong-buy" rating to a "hold" rating in a research report on Friday, January 30th. Rosenblatt Securities reissued a "buy" rating and set a $9.00 price target on shares of Stagwell in a research report on Wednesday, March 11th. Finally, Weiss Ratings raised Stagwell from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, March 16th. Five analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $7.96.

Stagwell Price Performance

Shares of NASDAQ STGW opened at $6.36 on Friday. The business's 50 day moving average price is $6.06 and its two-hundred day moving average price is $5.58. The company has a market cap of $1.61 billion, a PE ratio of 79.44 and a beta of 1.28. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.71. Stagwell has a twelve month low of $4.03 and a twelve month high of $7.52.

Stagwell (NASDAQ:STGW - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.01). Stagwell had a net margin of 0.64% and a return on equity of 23.73%. The firm had revenue of $704.14 million during the quarter, compared to analyst estimates of $700.48 million. During the same period in the previous year, the company posted $0.12 EPS. Stagwell's revenue for the quarter was up 8.0% compared to the same quarter last year. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. On average, analysts predict that Stagwell will post 0.88 EPS for the current year.

Institutional Investors Weigh In On Stagwell

A number of large investors have recently added to or reduced their stakes in STGW. Kestra Advisory Services LLC acquired a new stake in Stagwell during the fourth quarter worth approximately $26,000. Clearstead Advisors LLC lifted its stake in Stagwell by 186.2% during the fourth quarter. Clearstead Advisors LLC now owns 7,020 shares of the company's stock worth $34,000 after purchasing an additional 4,567 shares during the last quarter. State of Alaska Department of Revenue bought a new stake in Stagwell during the third quarter worth $47,000. Tower Research Capital LLC TRC lifted its stake in Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company's stock worth $49,000 after purchasing an additional 8,170 shares during the last quarter. Finally, Inceptionr LLC bought a new stake in Stagwell during the fourth quarter worth $50,000. Institutional investors and hedge funds own 35.61% of the company's stock.

Key Stagwell News

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Adjusted results and revenue growth — Stagwell reported Q1 revenue of ~$704M (up ~8% YoY), adjusted EPS of $0.17 (up ~31% YoY) and adjusted EBITDA of $90M (up 9%), showing improved operating performance. Stagwell Inc. Nasdaq: STGW Reports Results for the Three Months Ended March 31, 2026
• Positive Sentiment: Strong commercial traction — record net new business of $141M in Q1 and LTM net new business of $486M, supporting revenue runoff and future growth. Q1 results and net new business
• Positive Sentiment: Digital transformation growth — digital transformation net revenue was $97M (+9% YoY) with a two‑year growth stack of ~26%, highlighting higher‑margin, strategic revenue growth. Digital transformation metrics
• Positive Sentiment: Product/tech integration move — Stagwell announced a unified technology infrastructure intended to improve service delivery and margins, which may support longer‑term efficiency and cross‑sell. Stagwell Announces Unified Technology Infrastructure
• Neutral Sentiment: FY26 guidance reiterated — management set FY26 EPS guidance of $0.98–$1.12 (consensus ~$1.01), and reiterated revenue/EBITDA targets and free cash flow conversion goals; guidance is broadly in line with Street expectations but leaves room for range‑driven volatility. FY26 guidance and slide deck
• Negative Sentiment: Earnings miss vs. some estimates — reported EPS of $0.17 missed the Zacks/consensus figure of $0.18 by $0.01, prompting near‑term selling pressure among precision‑focused traders. Stagwell Misses Q1 Earnings Estimates
• Negative Sentiment: GAAP loss and mixed headlines — the company reported a GAAP net loss of ~$13M and some outlets framed the quarter as a revenue or earnings miss, creating headline risk despite positive adjusted metrics. Stagwell earnings in-line but revenue misses estimates

About Stagwell

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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