Stagwell (NASDAQ:STGW) Trading Down 13.6% – Time to Sell?

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

Analyst Ratings Changes

STGW has been the subject of several research analyst reports. Zacks Research upgraded Stagwell from a “strong sell” rating to a “hold” rating in a research report on Monday, September 1st. Wall Street Zen lowered shares of Stagwell from a “buy” rating to a “hold” rating in a research report on Friday, August 22nd. Weiss Ratings reissued a “sell (e+)” rating on shares of Stagwell in a research note on Wednesday, October 8th. Morgan Stanley dropped their price objective on shares of Stagwell from $8.00 to $7.00 and set an “equal weight” rating for the company in a research report on Friday, August 1st. Finally, Rosenblatt Securities lowered their target price on Stagwell from $10.00 to $9.00 and set a “buy” rating for the company in a research note on Wednesday, October 29th. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $8.15.

Stagwell Price Performance

The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.86 and a current ratio of 0.86. The company has a market capitalization of $1.26 billion, a price-to-earnings ratio of 10.11 and a beta of 1.51. The company has a 50-day moving average price of $5.27 and a 200-day moving average price of $5.13.

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

Institutional Investors Weigh In On Stagwell

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of Stagwell by 2.8% in the 1st quarter. Vanguard Group Inc. now owns 5,548,288 shares of the company’s stock valued at $33,567,000 after purchasing an additional 149,020 shares during the period. Boston Partners grew its holdings in shares of Stagwell by 40.9% during the second quarter. Boston Partners now owns 3,273,852 shares of the company’s stock worth $15,515,000 after buying an additional 950,913 shares in the last quarter. Geode Capital Management LLC raised its position in Stagwell by 23.6% in the 2nd quarter. Geode Capital Management LLC now owns 2,852,617 shares of the company’s stock valued at $12,838,000 after buying an additional 544,464 shares during the last quarter. ABLE Financial Group LLC bought a new stake in Stagwell in the 2nd quarter valued at approximately $10,001,000. Finally, Penn Capital Management Company LLC boosted its position in Stagwell by 24.8% during the 1st quarter. Penn Capital Management Company LLC now owns 2,084,525 shares of the company’s stock worth $12,646,000 after acquiring an additional 413,597 shares during the last quarter. Institutional investors own 35.61% of the company’s stock.

Stagwell Company Profile

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.