Stagwell (NASDAQ:STGW) Cut to “Buy” at Wall Street Zen

Wall Street Zen cut shares of Stagwell (NASDAQ:STGW) from a strong-buy rating to a buy rating in a research note released on Saturday morning.

Several other research analysts have also recently issued reports on STGW. B. Riley Financial raised their price objective on Stagwell from $8.00 to $10.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Needham & Company LLC upped their target price on Stagwell from $8.00 to $10.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Rosenblatt Securities increased their price target on shares of Stagwell from $9.00 to $10.00 and gave the stock a “buy” rating in a report on Tuesday, August 4th. Weiss Ratings reissued a “sell (d+)” rating on shares of Stagwell in a research report on Friday, July 31st. Finally, Wells Fargo & Company upped their price objective on shares of Stagwell from $8.00 to $10.00 and gave the company an “overweight” rating in a report on Friday, July 31st. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Stagwell presently has an average rating of “Moderate Buy” and an average price target of $9.60.

Stagwell Price Performance

Shares of STGW opened at $8.70 on Friday. The firm has a market capitalization of $2.13 billion, a PE ratio of 145.00 and a beta of 1.25. The company has a debt-to-equity ratio of 2.11, a current ratio of 0.81 and a quick ratio of 0.81. Stagwell has a 1-year low of $4.28 and a 1-year high of $9.55. The company’s fifty day moving average price is $7.69 and its 200-day moving average price is $6.62.

Stagwell (NASDAQ:STGW) last released its earnings results on Thursday, July 30th. The company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.19 by $0.06. Stagwell had a return on equity of 27.30% and a net margin of 0.53%.The firm had revenue of $786.31 million for the quarter, compared to the consensus estimate of $754.56 million. During the same period in the prior year, the firm earned $0.17 EPS. The firm’s revenue was up 11.2% on a year-over-year basis. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. On average, equities research analysts predict that Stagwell will post 0.92 EPS for the current year.

Insiders Place Their Bets

In related news, insider Frank P. Lanuto sold 62,000 shares of Stagwell stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $8.46, for a total transaction of $524,520.00. Following the completion of the transaction, the insider directly owned 491,977 shares in the company, valued at approximately $4,162,125.42. This trade represents a 11.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 11.20% of the company’s stock.

Institutional Investors Weigh In On Stagwell

Hedge funds have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Stagwell by 6.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,193 shares of the company’s stock valued at $316,000 after purchasing an additional 3,249 shares in the last quarter. Clearstead Advisors LLC boosted its holdings 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 buying an additional 4,567 shares in the last quarter. Arizona State Retirement System grew its position in Stagwell by 17.0% during the fourth quarter. Arizona State Retirement System now owns 32,401 shares of the company’s stock valued at $158,000 after buying an additional 4,702 shares during the period. Osaic Holdings Inc. grew its position in Stagwell by 2.6% during the fourth quarter. Osaic Holdings Inc. now owns 195,288 shares of the company’s stock valued at $955,000 after buying an additional 4,990 shares during the period. Finally, Virtu Financial LLC increased its holdings in Stagwell by 49.8% in the third quarter. Virtu Financial LLC now owns 15,062 shares of the company’s stock valued at $85,000 after buying an additional 5,008 shares in the last quarter. Hedge funds and other institutional investors own 35.61% of the company’s stock.

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.