Stagwell (NASDAQ:STGW) Upgraded to “Strong-Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Stagwell (NASDAQ:STGW) from a buy rating to a strong-buy rating in a research report report published on Saturday.

Several other equities analysts also recently commented on STGW. Needham & Company LLC upped their price target on shares of Stagwell from $8.00 to $10.00 and gave the company a “buy” rating in a research note on Thursday. Rosenblatt Securities reiterated a “buy” rating and issued a $9.00 price objective on shares of Stagwell in a research note on Tuesday, May 5th. Zacks Research raised shares of Stagwell from a “strong sell” rating to a “hold” rating in a report on Friday, June 5th. B. Riley Financial increased their target price on shares of Stagwell from $8.00 to $10.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Wells Fargo & Company raised their target price on shares of Stagwell from $8.00 to $10.00 and gave the stock an “overweight” rating in a report on Friday. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $9.40.

Stagwell Stock Performance

STGW opened at $8.45 on Friday. The business has a fifty day simple moving average of $7.19 and a 200 day simple moving average of $6.41. The company has a market capitalization of $2.09 billion, a PE ratio of 140.83 and a beta of 1.26. Stagwell has a 1 year low of $4.28 and a 1 year high of $8.50. The company has a debt-to-equity ratio of 1.99, a current ratio of 0.83 and a quick ratio of 0.83.

Stagwell (NASDAQ:STGW) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.06. The firm had revenue of $786.31 million for the quarter, compared to analysts’ expectations of $754.56 million. Stagwell had a return on equity of 26.66% and a net margin of 0.53%.The company’s quarterly revenue was up 11.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.17 EPS. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. Research analysts expect that Stagwell will post 0.86 EPS for the current year.

Insider Transactions at Stagwell

In related news, Director Bradley J. Gross sold 2,163,790 shares of the company’s stock in a transaction dated 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 completion of the sale, the director owned 8,789 shares of the company’s stock, valued at $53,085.56. This represents a 99.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Mark Jeffery Penn acquired 20,000 shares of Stagwell stock in a transaction on 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 completion of the purchase, 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 ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 11.20% of the stock is owned by insiders.

Institutional Trading of Stagwell

Several large investors have recently made changes to their positions in STGW. Kestra Private Wealth Services LLC acquired a new position in Stagwell during the first quarter valued at approximately $846,000. AdvisorShares Investments LLC acquired a new stake in shares of Stagwell in the 4th quarter valued at $478,000. Kanen Wealth Management LLC bought a new position in shares of Stagwell in the 1st quarter valued at $497,000. First Trust Advisors LP increased its stake in shares of Stagwell by 53.0% in the 1st quarter. First Trust Advisors LP now owns 673,642 shares of the company’s stock valued at $4,237,000 after purchasing an additional 233,489 shares during the last quarter. Finally, Empowered Funds LLC acquired a new position in shares of Stagwell during the 1st quarter worth $2,862,000. Institutional investors and hedge funds own 35.61% of the company’s stock.

Key Headlines Impacting Stagwell

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Analyst price targets raised: Wells Fargo upgraded its stance to “overweight” and lifted its price target from $8 to $10. Needham also raised its target to $10 and assigned a “buy” rating, implying approximately 19% upside from the referenced share price. Benzinga analyst rating reports
• Positive Sentiment: Adjusted Q2 earnings exceeded expectations: Stagwell reported adjusted EPS of $0.25, above the $0.17 analyst consensus and up from $0.17 a year earlier. Revenue rose 11% year over year to $786 million, surpassing the $755 million consensus estimate. Stagwell Q2 earnings and revenues article
• Positive Sentiment: Profitability and demand trends improved: Adjusted EBITDA increased 15% to $109 million, adjusted EPS grew 39%, and digital transformation organic net revenue climbed 18%. Record quarterly net new business of $171 million and $540 million over the last 12 months point to healthy client demand. Stagwell second-quarter results
• Neutral Sentiment: Management raised full-year 2026 adjusted EPS guidance to $1.03-$1.17 from the prior outlook, above the $1.01 consensus estimate. The company’s earnings presentation provides additional operating detail. Stagwell 2026 Q2 earnings presentation
• Negative Sentiment: Revenue outlook trails expectations: Full-year 2026 revenue guidance of $3.0 billion-$3.1 billion is below the approximately $3.2 billion consensus estimate, potentially limiting the benefit of the stronger EPS outlook.
• Negative Sentiment: Despite adjusted earnings growth, Stagwell posted a $8 million quarterly net loss attributable to common shareholders, compared with a $5 million loss a year earlier, underscoring continued GAAP profitability risk.

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.