Stagwell (NASDAQ:STGW) Sets New 12-Month High – Still a Buy?

Stagwell Inc. (NASDAQ:STGW)’s share price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $7.79 and last traded at $7.7340, with a volume of 43231 shares trading hands. The stock had previously closed at $7.58.

Analyst Ratings Changes

Several equities analysts recently issued reports on STGW shares. Zacks Research raised Stagwell from a “strong sell” rating to a “hold” rating in a research report on Friday, June 5th. Rosenblatt Securities reaffirmed a “buy” rating and set a $9.00 target price on shares of Stagwell in a report on Tuesday, May 5th. Craig Hallum set a $8.00 price target on shares of Stagwell and gave the stock a “buy” rating in a report on Wednesday, March 11th. Wall Street Zen cut shares of Stagwell from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 2nd. Finally, Needham & Company LLC raised their target price on shares of Stagwell from $7.25 to $8.00 and gave the stock a “buy” rating in a report on Monday, June 29th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $7.80.

Stagwell Trading Down 0.4%

The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 1.99. The company’s 50-day moving average is $6.73 and its 200 day moving average is $6.10. The company has a market cap of $1.90 billion, a price-to-earnings ratio of 109.57 and a beta of 1.26.

Stagwell (NASDAQ:STGW) last posted its 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). Stagwell had a return on equity of 24.12% and a net margin of 0.64%.The firm had revenue of $704.14 million for the quarter, compared to analysts’ expectations of $700.48 million. During the same period in the previous year, the company earned $0.12 earnings per share. The company’s revenue was up 8.0% compared to the same quarter last year. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS. Research analysts predict that Stagwell Inc. will post 0.86 EPS for the current year.

Insider Activity at Stagwell

In other Stagwell news, CEO Mark Jeffery Penn bought 20,000 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The shares were purchased 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 of the company’s stock, valued at approximately $135,445,741.20. This represents a 0.09% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Bradley J. Gross sold 2,163,790 shares of the business’s stock in a transaction on 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 completion of the sale, the director directly owned 8,789 shares of the company’s stock, valued at approximately $53,085.56. The trade was 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 currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. JPMorgan Chase & Co. boosted its stake in shares of Stagwell by 59.0% in the third quarter. JPMorgan Chase & Co. now owns 1,736,644 shares of the company’s stock worth $9,777,000 after acquiring an additional 644,654 shares during the last quarter. My Personal CFO LLC purchased a new position in Stagwell in the 4th quarter valued at $2,889,000. AdvisorShares Investments LLC acquired a new stake in Stagwell during the 4th quarter worth $478,000. Kestra Private Wealth Services LLC acquired a new stake in Stagwell during the 1st quarter worth $846,000. Finally, MGO Private Wealth LLC purchased a new stake in shares of Stagwell during the third quarter worth $178,000. Institutional investors and hedge funds own 35.61% of the company’s stock.

Stagwell Company Profile

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.