Stagwell (NASDAQ:STGW) Hits New 1-Year High – Should You Buy?

Shares of Stagwell Inc. (NASDAQ:STGW) reached a new 52-week high during trading on Wednesday . The company traded as high as $8.10 and last traded at $8.0450, with a volume of 657982 shares trading hands. The stock had previously closed at $7.97.

Stagwell News Summary

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Stagwell reported second-quarter revenue of $786 million, up 11% year over year, while adjusted EPS increased 39% to $0.25 and adjusted EBITDA rose 15% to $109 million. Adjusted earnings surpassed the roughly $0.17 consensus estimate. Stagwell second-quarter results
• Positive Sentiment: Growth was especially strong in the digital transformation business, where organic net revenue increased 18%. Stagwell also reported record quarterly net new business of $171 million and $540 million over the last twelve months, signaling solid demand for its services. Stagwell results and new business announcement
• Positive Sentiment: Stagwell raised its full-year 2026 adjusted EPS guidance to $1.03-$1.17, above the approximately $1.01 analyst consensus. The improved profit outlook may reinforce expectations for continued earnings growth. Stagwell 2026 guidance announcement
• Positive Sentiment: Needham raised its price target for STGW from $8 to $10 and upgraded the stock to “Buy,” implying additional upside from the referenced share price. Needham Stagwell price target upgrade
• Neutral Sentiment: The reported figures differ by measure: adjusted EPS was $0.25, while GAAP loss attributable to common shareholders was $8 million, or a loss of $0.03 per share. This highlights strong underlying profitability but continuing GAAP losses. Stagwell quarterly earnings release
• Negative Sentiment: Full-year revenue guidance of $3.0 billion-$3.1 billion is below the roughly $3.2 billion consensus forecast, potentially limiting the stock’s upside despite the earnings beat. Stagwell revenue guidance

Analyst Ratings Changes

Several equities analysts have recently commented on STGW shares. Needham & Company LLC boosted their target price on shares of Stagwell from $8.00 to $10.00 and gave the company a “buy” rating in a research report on Thursday. Wall Street Zen downgraded shares of Stagwell from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 2nd. Weiss Ratings downgraded Stagwell from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Zacks Research raised Stagwell from a “strong sell” rating to a “hold” rating in a report on Friday, June 5th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $9.00 price objective on shares of Stagwell in a research note on Tuesday, May 5th. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $8.20.

Stagwell Trading Up 5.1%

The company has a market cap of $2.10 billion, a P/E ratio of 121.29 and a beta of 1.26. The firm has a 50-day moving average of $7.15 and a 200 day moving average of $6.40. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 1.99.

Stagwell (NASDAQ:STGW) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.08. The firm had revenue of $786.31 million for the quarter, compared to analyst estimates of $754.56 million. Stagwell had a return on equity of 24.12% and a net margin of 0.64%.The company’s revenue was up 11.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.17 earnings per share. Stagwell has set its FY 2026 guidance at 1.030-1.170 EPS. On average, analysts predict that Stagwell Inc. will post 0.86 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Bradley J. Gross sold 2,163,790 shares of the business’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $6.04, for a total value of $13,069,291.60. Following the completion of the sale, the director directly owned 8,789 shares of the company’s stock, valued at $53,085.56. The trade was a 99.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Mark Jeffery Penn acquired 20,000 shares of Stagwell stock in a transaction on Wednesday, May 13th. The stock was purchased at an average cost of $5.88 per share, with a total value of $117,600.00. Following 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 trade represents a 0.09% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 11.20% of the company’s stock.

Institutional Investors Weigh In On Stagwell

A number of institutional investors and hedge funds have recently made changes to their positions in STGW. Hotchkis & Wiley Capital Management LLC increased its holdings in Stagwell by 4.6% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 21,034,577 shares of the company’s stock worth $118,425,000 after purchasing an additional 920,431 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Stagwell by 22.5% in the first quarter. Dimensional Fund Advisors LP now owns 5,035,320 shares of the company’s stock valued at $31,671,000 after purchasing an additional 923,771 shares in the last quarter. UBS Group AG boosted its position in shares of Stagwell by 10.8% during the third quarter. UBS Group AG now owns 2,851,083 shares of the company’s stock valued at $16,052,000 after buying an additional 277,637 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in Stagwell by 54.1% during the fourth quarter. JPMorgan Chase & Co. now owns 2,676,532 shares of the company’s stock worth $13,088,000 after buying an additional 939,888 shares in the last quarter. Finally, State Street Corp grew its holdings in Stagwell by 3.3% during the fourth quarter. State Street Corp now owns 2,299,100 shares of the company’s stock worth $11,243,000 after buying an additional 73,817 shares in the last quarter. Institutional investors and hedge funds own 35.61% of the company’s stock.

Stagwell Company Profile

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.