Stagwell (NASDAQ:STGW) Shares Gap Up After Better-Than-Expected Earnings

Shares of Stagwell Inc. (NASDAQ:STGW) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.81, but opened at $6.69. Stagwell shares last traded at $6.1870, with a volume of 53,413,892 shares traded.

The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.23 by $0.01. The company had revenue of $743.00 million for the quarter, compared to analyst estimates of $743.11 million. Stagwell had a positive return on equity of 14.54% and a negative net margin of 0.06%.The firm’s revenue was up 4.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.22 earnings per share. Stagwell has set its FY 2025 guidance at 0.750-0.880 EPS.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Stagwell

A number of institutional investors have recently made changes to their positions in STGW. State of Alaska Department of Revenue acquired a new stake in shares of Stagwell during the third quarter valued at $47,000. Parkside Financial Bank & Trust lifted its holdings in Stagwell by 43.0% in the 2nd 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 acquired a new stake in shares of Stagwell during the 1st quarter worth about $64,000. Tower Research Capital LLC TRC grew its holdings in shares of Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company’s stock worth $49,000 after buying an additional 8,170 shares in the last quarter. Finally, Ameritas Investment Partners Inc. raised its position in shares of Stagwell by 51.6% in the second quarter. Ameritas Investment Partners Inc. now owns 11,790 shares of the company’s stock valued at $53,000 after buying an additional 4,013 shares during the last quarter. 35.61% of the stock is owned by institutional investors and hedge funds.

Stagwell Stock Down 14.2%

The firm’s 50 day moving average is $5.25 and its 200-day moving average is $5.13. The firm has a market cap of $1.25 billion, a PE ratio of 80.33 and a beta of 1.51. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 1.90.

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.