Stagwell (NASDAQ:STGW) Issues FY24 Earnings Guidance

Stagwell (NASDAQ:STGW) updated its FY24 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of $0.75-$0.88 for the period, compared to the consensus estimate of $0.78. Stagwell also updated its FY 2024 guidance to 0.750-0.880 EPS.

Stagwell Stock Performance

NASDAQ:STGW opened at $6.90 on Friday. The company has a debt-to-equity ratio of 1.39, a current ratio of 0.75 and a quick ratio of 0.75. The firm has a 50 day simple moving average of $5.83 and a 200-day simple moving average of $5.79. Stagwell has a 1-year low of $3.83 and a 1-year high of $8.59.

Stagwell (NASDAQ:STGW) last released its earnings results on Tuesday, February 27th. The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.13). The firm had revenue of $654.90 million during the quarter, compared to analysts’ expectations of $683.12 million. Stagwell had a positive return on equity of 7.35% and a negative net margin of 0.16%. The firm’s revenue was down 7.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.22 earnings per share. On average, equities research analysts anticipate that Stagwell will post 0.75 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. TheStreet raised shares of Stagwell from a d+ rating to a c- rating in a research note on Wednesday, March 6th. Benchmark lifted their target price on shares of Stagwell from $6.50 to $9.00 and gave the stock a buy rating in a research note on Thursday. B. Riley lifted their price target on shares of Stagwell from $9.00 to $10.00 and gave the company a buy rating in a report on Thursday. Finally, Needham & Company LLC reiterated a buy rating and issued a $7.50 price target on shares of Stagwell in a report on Thursday. Three analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat, Stagwell currently has a consensus rating of Moderate Buy and a consensus price target of $8.06.

Insider Activity at Stagwell

In other Stagwell news, CEO Mark Jeffery Penn bought 10,000 shares of Stagwell stock in a transaction that occurred on Wednesday, February 28th. The shares were acquired at an average price of $5.20 per share, for a total transaction of $52,000.00. Following the acquisition, the chief executive officer now owns 2,480,469 shares of the company’s stock, valued at approximately $12,898,438.80. The acquisition was disclosed in a filing with the SEC, which is available at this link. In related news, Director Wade Oosterman bought 5,000 shares of the company’s stock in a transaction dated Wednesday, February 28th. The stock was bought at an average price of $5.04 per share, with a total value of $25,200.00. Following the transaction, the director now owns 128,204 shares of the company’s stock, valued at $646,148.16. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Mark Jeffery Penn bought 10,000 shares of the company’s stock in a transaction dated Wednesday, February 28th. The stock was bought at an average cost of $5.20 per share, with a total value of $52,000.00. Following the transaction, the chief executive officer now directly owns 2,480,469 shares in the company, valued at approximately $12,898,438.80. The disclosure for this purchase can be found here. Company insiders own 4.90% 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.