Stagwell (NASDAQ:STGW) Shares Gap Up After Better-Than-Expected Earnings

Stagwell Inc. (NASDAQ:STGW)’s share price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $4.81, but opened at $6.69. Stagwell shares last traded at $6.1870, with a volume of 53,413,892 shares trading hands.

The company reported $0.24 EPS for the quarter, beating the consensus estimate of $0.23 by $0.01. The business had revenue of $743.00 million during the quarter, compared to analyst estimates of $743.11 million. Stagwell had a negative net margin of 0.06% and a positive return on equity of 14.54%. The company’s quarterly revenue was up 4.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.22 EPS. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS.

Analyst Ratings Changes

STGW has been the topic of a number of analyst reports. Zacks Research upgraded Stagwell from a “strong sell” rating to a “hold” rating in a report on Monday, September 1st. Weiss Ratings reissued a “sell (e+)” rating on shares of Stagwell in a research report on Wednesday, October 8th. Rosenblatt Securities lowered their target price on shares of Stagwell from $10.00 to $9.00 and set a “buy” rating for the company in a research note on Wednesday, October 29th. Needham & Company LLC upped their price target on Stagwell from $6.36 to $7.25 and gave the stock a “buy” rating in a research report on Friday. Finally, Morgan Stanley decreased their price objective on Stagwell from $8.00 to $7.00 and set an “equal weight” rating for the company in a report on Friday, August 1st. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $8.15.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Teacher Retirement System of Texas acquired a new stake in Stagwell during the first quarter worth about $86,000. New York State Common Retirement Fund grew its position in shares of Stagwell by 4.6% during the 1st quarter. New York State Common Retirement Fund now owns 1,686,009 shares of the company’s stock valued at $10,200,000 after acquiring an additional 73,676 shares during the period. Allianz Asset Management GmbH raised its holdings in Stagwell by 126.2% in the 1st quarter. Allianz Asset Management GmbH now owns 63,800 shares of the company’s stock worth $386,000 after purchasing an additional 35,600 shares during the period. First Pacific Advisors LP boosted its position in Stagwell by 6.1% during the first quarter. First Pacific Advisors LP now owns 1,191,918 shares of the company’s stock worth $7,211,000 after purchasing an additional 68,402 shares in the last quarter. Finally, Mackenzie Financial Corp purchased a new position in Stagwell during the first quarter worth approximately $175,000. 35.61% of the stock is currently owned by hedge funds and other institutional investors.

Stagwell Stock Performance

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 has a market capitalization of $1.25 billion, a price-to-earnings ratio of 80.33 and a beta of 1.51. The firm has a fifty day simple moving average of $5.25 and a 200 day simple moving average of $5.13.

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.