Stagwell (NASDAQ:STGW) Shares Up 8.2% – What’s Next?

Stagwell Inc. (NASDAQ:STGW) shares shot up 8.2% on Wednesday . The company traded as high as $7.05 and last traded at $7.1550. 424,963 shares changed hands during trading, a decline of 76% from the average session volume of 1,763,562 shares. The stock had previously closed at $6.61.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on STGW. Rosenblatt Securities reiterated a “buy” rating and set a $9.00 price target on shares of Stagwell in a research note on Tuesday, May 5th. B. Riley Financial reduced their target price on shares of Stagwell from $9.00 to $7.00 and set a “buy” rating on the stock in a research note on Friday, March 6th. Wall Street Zen downgraded shares of Stagwell from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 2nd. Weiss Ratings downgraded shares of Stagwell from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 4th. Finally, Zacks Research downgraded shares of Stagwell from a “hold” rating to a “strong sell” rating in a research note on Thursday, May 7th. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Stagwell has an average rating of “Hold” and a consensus target price of $7.65.

Stagwell Price Performance

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 company’s 50 day moving average price is $6.46 and its 200 day moving average price is $5.77. The company has a market cap of $1.77 billion, a price-to-earnings ratio of 101.93 and a beta of 1.27.

Stagwell (NASDAQ:STGW) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.01). The company had revenue of $704.14 million for the quarter, compared to analyst estimates of $700.48 million. Stagwell had a return on equity of 24.12% and a net margin of 0.64%.The firm’s quarterly revenue was up 8.0% on a year-over-year basis. During the same quarter last year, the company earned $0.12 EPS. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. On average, equities research analysts predict that Stagwell Inc. will post 0.86 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Mark Jeffery Penn purchased 20,000 shares of Stagwell stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average price of $5.88 per share, for a total transaction of $117,600.00. Following the transaction, the chief executive officer directly owned 23,034,990 shares in the company, valued at approximately $135,445,741.20. This represents a 0.09% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Bradley J. Gross sold 2,163,790 shares of the company’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 transaction, the director owned 8,789 shares in the company, valued at approximately $53,085.56. This trade represents a 99.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 11.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in STGW. AQR Capital Management LLC acquired a new position in Stagwell during the 1st quarter worth about $74,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Stagwell by 6.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,193 shares of the company’s stock worth $316,000 after purchasing an additional 3,249 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Stagwell during the 1st quarter worth about $137,000. Jane Street Group LLC raised its holdings in Stagwell by 36.0% during the 1st quarter. Jane Street Group LLC now owns 123,000 shares of the company’s stock worth $744,000 after purchasing an additional 32,546 shares during the last quarter. Finally, Legal & General Group Plc raised its holdings in Stagwell by 5.2% during the 2nd quarter. Legal & General Group Plc now owns 101,049 shares of the company’s stock worth $455,000 after purchasing an additional 5,017 shares during the last quarter. Institutional investors and hedge funds 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.