It is Poised to be a Bull Market for Stagwell Inc. (STGW)

Stagwell Inc. (NASDAQ: STGW) stock fell -4.82% on Wednesday to $5.93 against a previous-day closing price of $6.23. With 0.55 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.05 million shares. The 52-week range on STGW shows that it touched its highest point at $9.23 and its lowest point at $4.80 during that stretch. It currently has a 1-year price target of $10.67. Beta for the stock currently stands at 1.06.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of STGW was up-trending over the past week, with a rise of 3.67%, but this was down by -3.58% over a month. Three-month performance dropped to -14.31% while six-month performance fell -20.30%. The stock lost -24.94% in the past year, while it has lost -4.51% so far this year. A look at the trailing 12-month EPS for STGW yields 0.12 with Next year EPS estimates of 1.04. For the next quarter, that number is 0.21. This implies an EPS growth rate of 525.50% for this year and 12.58% for next year. EPS is expected to grow by 6.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -41.00%.

Float and Shares Shorts:

At present, 125.20 million STGW shares are outstanding with a float of 121.54 million shares on hand for trading. On Apr 27, 2023, short shares totaled 2.85 million, which was 2.19% higher than short shares on Mar 30, 2023. In addition to Mr. Mark J. Penn as the firm’s Chairman & CEO, Mr. Jay R. Leveton serves as its Pres.

Institutional Ownership:

Through their ownership of 76.19% of STGW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.23% of STGW, in contrast to 51.21% held by mutual funds. Shares owned by individuals account for 22.24%. As the largest shareholder in STGW with 14.12% of the stake, Hotchkis & Wiley Capital Manageme holds 18,579,770 shares worth 18,579,770. A second-largest stockholder of STGW, Goldman Sachs & Co. LLC, holds 16,866,333 shares, controlling over 12.82% of the firm’s shares. Madison Avenue Partners LP is the third largest shareholder in STGW, holding 7,147,662 shares or 5.43% stake. With a 4.36% stake in STGW, the American Beacon Small Cap Value F is the largest stakeholder. A total of 5,734,549 shares are owned by the mutual fund manager. The Hotchkis & Wiley Small Cap Value, which owns about 3.80% of STGW stock, is the second-largest Mutual Fund holder. It holds 5,004,500 shares valued at 31.13 million. Vanguard Total Stock Market ETF holds 2.15% of the stake in STGW, owning 2,835,195 shares worth 17.63 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, STGW reported revenue of $672.91M and operating income of $50.60M. The EBITDA in the recently reported quarter was $82.71M and diluted EPS was $0.08.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for STGW since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With STGW analysts setting a high price target of $14.00 and a low target of $8.00, the average target price over the next 12 months is $10.67. Based on these targets, STGW could surge 136.09% to reach the target high and rise by 34.91% to reach the target low. Reaching the average price target will result in a growth of 79.93% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded STGW stock several times over the past three months with 1 Buys and 11 Sells. In these transactions, 750,000 shares were bought while 20,540,274 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 2,541,846 while 20,662,670 shares were sold.

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