Stagwell (NASDAQ:STGW) Price Target Raised to $10.00 at Wells Fargo & Company

Stagwell (NASDAQ:STGW) had its price target raised by Wells Fargo & Company from $8.00 to $10.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Wells Fargo & Company‘s price target indicates a potential upside of 21.51% from the stock’s current price.

Several other brokerages have also recently issued reports on STGW. Zacks Research raised shares of Stagwell from a “strong sell” rating to a “hold” rating in a report on Friday, June 5th. Weiss Ratings cut shares of Stagwell from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Needham & Company LLC raised their price target on shares of Stagwell from $8.00 to $10.00 and gave the company a “buy” rating in a research report on Thursday. Rosenblatt Securities restated a “buy” rating and issued a $9.00 price objective on shares of Stagwell in a report on Tuesday, May 5th. Finally, Wall Street Zen cut Stagwell from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 2nd. Five investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $8.50.

Stagwell Stock Down 3.1%

Shares of NASDAQ:STGW traded down $0.26 on Friday, hitting $8.23. 370,298 shares of the company traded hands, compared to its average volume of 1,657,641. Stagwell has a 52 week low of $4.28 and a 52 week high of $8.50. 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 stock has a 50 day simple moving average of $7.15 and a 200-day simple moving average of $6.40. The company has a market cap of $2.04 billion, a PE ratio of 117.79 and a beta of 1.26.

Stagwell (NASDAQ:STGW) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.17 by $0.08. The company had revenue of $786.31 million for the quarter, compared to analysts’ expectations of $754.56 million. Stagwell had a net margin of 0.64% and a return on equity of 24.12%. Stagwell’s revenue was up 11.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.17 EPS. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. As a group, research analysts expect that Stagwell will post 0.86 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Bradley J. Gross sold 2,163,790 shares of the stock in a transaction that occurred on Monday, May 4th. The shares were 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 $53,085.56. This represents a 99.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Mark Jeffery Penn bought 20,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The stock was bought at an average price of $5.88 per share, for a total transaction of $117,600.00. Following the acquisition, the chief executive officer directly owned 23,034,990 shares of the company’s stock, valued at $135,445,741.20. The trade was a 0.09% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 11.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Stagwell

Institutional investors and hedge funds have recently modified their holdings of the company. Kestra Private Wealth Services LLC purchased a new stake in Stagwell during the first quarter valued at $846,000. AdvisorShares Investments LLC purchased a new position in Stagwell in the fourth quarter worth about $478,000. Kanen Wealth Management LLC bought a new stake in shares of Stagwell during the 1st quarter valued at about $497,000. Quantinno Capital Management LP grew its stake in shares of Stagwell by 35.9% during the 1st quarter. Quantinno Capital Management LP now owns 136,019 shares of the company’s stock valued at $856,000 after purchasing an additional 35,914 shares during the period. Finally, Sei Investments Co. increased its position in shares of Stagwell by 104.2% during the 1st quarter. Sei Investments Co. now owns 371,788 shares of the company’s stock valued at $2,339,000 after purchasing an additional 189,751 shares during the last quarter. 35.61% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Stagwell

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Stagwell reported $0.25 in adjusted EPS, versus the $0.17 consensus estimate and $0.17 a year earlier. Revenue rose 11% year over year to $786 million, ahead of the $754.6 million estimate. Stagwell Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Underlying growth and profitability strengthened. Adjusted EBITDA increased 15% to $109 million, adjusted EPS grew 39% to $0.25, and digital-transformation net revenue grew 18% organically. Record quarterly net new business of $171 million and $540 million over the last 12 months also support future revenue growth. Stagwell Reports Second-Quarter Results
• Positive Sentiment: Full-year adjusted EPS guidance was raised. Stagwell now expects fiscal 2026 adjusted EPS of $1.03 to $1.17, above the prior consensus estimate of $1.01. Stagwell 2026 Guidance Update
• Positive Sentiment: Needham turned more bullish. The firm raised its price target from $8 to $10 and maintained a “Buy” rating, implying additional upside based on the reported reference price. Benzinga analyst update
• Neutral Sentiment: GAAP profitability remains weak. Stagwell posted a $0.03 GAAP loss per share and an $8 million net loss, despite the strong adjusted results. Its net margin was only 0.64%, which may limit enthusiasm among investors focused on bottom-line earnings. Stagwell Q2 Earnings Snapshot
• Negative Sentiment: Full-year revenue guidance trails expectations. Management forecasts 2026 revenue of approximately $3.0 billion to $3.1 billion, below the roughly $3.2 billion analyst consensus, creating a potential offset to the earnings beat and higher EPS outlook. Stagwell 2026 Q2 Earnings Presentation

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.