Stagwell Inc. (NASDAQ: STGW) stock fell -1.27% on Friday to $5.44 against a previous-day closing price of $5.51. With 4.14 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.81 million shares. During the session, the Advertising Agencies company that operates in wider Communication Services sector, reached to the highest price of $5.58 whereas the lowest price it dropped to was $5.41. The 52-week range on STGW shows that it touched its highest point at $9.23 and its lowest point at $4.67 during that stretch. It currently has a 1-year price target of $9.12. Beta for the stock currently stands at 1.09.
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 2.45%, but this was up by 4.62% over a month. Three-month performance dropped to -29.90% while six-month performance fell -16.31%. The stock lost -25.89% in the past year, while it has lost -12.40% so far this year. A look at the trailing 12-month EPS for STGW yields -0.01 with Next year EPS estimates of 0.99. For the next quarter, that number is 0.22. This implies an EPS growth rate of 525.50% for this year and 25.06% 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, 115.40 million STGW shares are outstanding with a float of 111.64 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.16 million, which was 3.57% higher than short shares on Jul 30, 2023. In addition to Mr. Mark Jeffrey Penn as the firm’s Chairman & CEO, Mr. Jay R. Leveton serves as its Pres.
Through their ownership of 89.45% of STGW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.86% of STGW, in contrast to 35.72% held by mutual funds. Shares owned by individuals account for 29.66%. As the largest shareholder in STGW with 15.91% of the stake, Hotchkis & Wiley Capital Manageme holds 18,521,920 shares worth 18,521,920. A second-largest stockholder of STGW, Goldman Sachs & Co. LLC, holds 16,858,576 shares, controlling over 14.48% of the firm’s shares. Madison Avenue Partners LP is the third largest shareholder in STGW, holding 7,147,662 shares or 6.14% stake. With a 4.99% stake in STGW, the American Beacon Small Cap Value F is the largest stakeholder. A total of 5,812,818 shares are owned by the mutual fund manager. The Hotchkis & Wiley Small Cap Value, which owns about 3.64% of STGW stock, is the second-largest Mutual Fund holder. It holds 4,237,700 shares valued at 23.1 million. Vanguard Total Stock Market ETF holds 2.44% of the stake in STGW, owning 2,835,195 shares worth 15.45 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 Jun 29, 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.
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 $12.00 and a low target of $7.00, the average target price over the next 12 months is $9.13. Based on these targets, STGW could surge 120.59% to reach the target high and rise by 28.68% to reach the target low. Reaching the average price target will result in a growth of 67.83% 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 4 Buys and 4 Sells. In these transactions, 459,040 shares were bought while 349,859 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 48,684,794 while 55,708,030 shares were sold.