Stagwell (NASDAQ:STGW) Shares Gap Up – What’s Next?

Shares of Stagwell Inc. (NASDAQ:STGW) gapped up prior to trading on Monday . The stock had previously closed at $5.30, but opened at $5.49. Stagwell shares last traded at $5.26, with a volume of 76,573 shares trading hands.

Analysts Set New Price Targets

A number of research firms have recently issued reports on STGW. Rosenblatt Securities reiterated a “buy” rating and issued a $10.00 target price on shares of Stagwell in a research note on Thursday, April 3rd. Benchmark lowered Stagwell from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 9th. Needham & Company LLC reiterated a “buy” rating and issued a $9.00 target price on shares of Stagwell in a research note on Thursday, April 3rd. Finally, Wells Fargo & Company lowered their target price on Stagwell from $9.00 to $8.00 and set an “overweight” rating for the company in a research note on Monday, May 12th. Two equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, Stagwell currently has an average rating of “Moderate Buy” and an average price target of $8.60.

Stagwell Trading Down 3.3%

The company has a debt-to-equity ratio of 1.97, a quick ratio of 0.95 and a current ratio of 0.95. The business has a fifty day simple moving average of $5.56 and a 200 day simple moving average of $6.37. The company has a market cap of $1.34 billion, a P/E ratio of -502.00 and a beta of 1.51.

Stagwell (NASDAQ:STGW) last released its earnings results on Thursday, May 8th. The company reported $0.12 EPS for the quarter, missing analysts’ consensus estimates of $0.17 by ($0.05). Stagwell had a return on equity of 8.03% and a net margin of 0.01%. The firm had revenue of $651.74 million for the quarter, compared to the consensus estimate of $686.46 million. During the same period in the prior year, the business earned $0.16 EPS. The company’s quarterly revenue was down 2.7% on a year-over-year basis. Analysts anticipate that Stagwell Inc. will post 0.59 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jane Street Group LLC boosted its position in Stagwell by 36.0% during the 1st quarter. Jane Street Group LLC now owns 123,000 shares of the company’s stock valued at $744,000 after purchasing an additional 32,546 shares during the period. Optimize Financial Inc raised its stake in Stagwell by 15.1% during the 1st quarter. Optimize Financial Inc now owns 35,390 shares of the company’s stock valued at $214,000 after acquiring an additional 4,635 shares in the last quarter. Ascent Group LLC bought a new stake in Stagwell during the 1st quarter valued at $215,000. Dynamic Technology Lab Private Ltd bought a new stake in Stagwell during the 1st quarter valued at $137,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Stagwell by 6.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,193 shares of the company’s stock valued at $316,000 after acquiring an additional 3,249 shares in the last quarter. Institutional investors and hedge funds own 35.61% of the company’s stock.

About Stagwell

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.