Stagwell (NASDAQ:STGW) Trading Down 13.6% – Here’s What Happened

Stagwell Inc. (NASDAQ:STGW) was down 13.6% on Friday . The company traded as low as $5.04 and last traded at $4.8550. Approximately 1,799,651 shares were traded during trading, an increase of 29% from the average daily volume of 1,391,133 shares. The stock had previously closed at $5.62.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on STGW shares. Wall Street Zen downgraded shares of Stagwell from a “buy” rating to a “hold” rating in a report on Friday, August 22nd. Morgan Stanley reduced their price target on shares of Stagwell from $8.00 to $7.00 and set an “equal weight” rating for the company in a research note on Friday, August 1st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Stagwell in a research note on Wednesday, October 8th. Rosenblatt Securities cut their target price on Stagwell from $10.00 to $9.00 and set a “buy” rating for the company in a research report on Wednesday, October 29th. Finally, Zacks Research raised Stagwell from a “strong sell” rating to a “hold” rating in a research note on Monday, September 1st. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $8.15.

Stagwell Stock Performance

The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 1.90. The firm has a market capitalization of $1.26 billion, a PE ratio of 10.11 and a beta of 1.51. The firm’s fifty day moving average price is $5.27 and its 200 day moving average price is $5.13.

Stagwell (NASDAQ:STGW) last released its quarterly earnings data on Thursday, November 6th. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.01. Stagwell had a positive return on equity of 14.54% and a negative net margin of 0.06%.The firm had revenue of $743.00 million during the quarter, compared to analysts’ expectations of $743.11 million. During the same quarter last year, the firm earned $0.22 earnings per share. The business’s revenue for the quarter was up 4.5% on a year-over-year basis. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS. On average, research analysts anticipate that Stagwell Inc. will post 0.59 earnings per share for the current year.

Institutional Investors Weigh In On Stagwell

Institutional investors and hedge funds have recently modified their holdings of the business. State of Alaska Department of Revenue bought a new position in shares of Stagwell in the 3rd quarter valued at approximately $47,000. Parkside Financial Bank & Trust raised its stake in shares of Stagwell by 43.0% in the second quarter. Parkside Financial Bank & Trust now owns 9,981 shares of the company’s stock valued at $45,000 after purchasing an additional 3,003 shares in the last quarter. Vident Advisory LLC bought a new position in shares of Stagwell during the 1st quarter worth about $64,000. Tower Research Capital LLC TRC boosted its holdings in Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company’s stock valued at $49,000 after purchasing an additional 8,170 shares in the last quarter. Finally, Ameritas Investment Partners Inc. raised its stake in Stagwell by 51.6% during the second quarter. Ameritas Investment Partners Inc. now owns 11,790 shares of the company’s stock worth $53,000 after acquiring an additional 4,013 shares in the last quarter. Institutional investors and hedge funds own 35.61% of the company’s stock.

About Stagwell

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.