Stagwell Inc. (NASDAQ:STGW) has recently proved to be a promising stock in the eyes of six industry analysts, who have all given the company an overall rating of “Buy.” Market data giant, Bloomberg.com, reports that these experts project a favorable future for Stagwell and its shareholders. Furthermore, the analysts’ average twelve-month price target currently stands at $10.83.
According to their recent quarterly earnings report release on May 9th, Stagwell’s financial performance since last year was less than optimal. While their revenue fell slightly below expectations, bringing in $622.44 million instead of the estimated $643.26 million, they generated a marginal 0.56% net margin – barely sustaining positive earnings per share (EPS) with only $0.10 per share, against initial projections of $0.19 per share.
Despite this misstep with their most recent financial figures posted, there are some good news on the horizon for STGW’s prospects due to their wide range of services provided to clients; this could prove especially advantageous considering current pandemic-induced changes in consumer behavior and digital adaptation across industries.
Through three fully-operational segments (Integrated Agencies Network [IAN], Brand Performance Network [BPN], Communications Network), Stagwell offers diverse services including digital transformation strategies for businesses looking to improve or enter new markets or technologies; data-driven digital marketing insights and media performance enhancing initiatives; as well as valuable creativity-driven communications programs aimed at molding brand reputation and identity in today’s ever-changing marketspace.
Apart from designing technology products such as AI-based digital communication solution software or cookie-less data analysis tools and other cutting-edge applications relevant to e-commerce companies and augmented reality solutions developers alike – STGW boasts inventing efficient text-messaging apps tailored towards targeted customer engagement.
All in all, despite past missed targets earlier on in the year Stagwell’s progress determination paired with highly-valued and sought-after services targeting the technology sector could steadily steer a course for improvement as clients increasingly demand for more innovative marketing services in response to evolving consumer demographics.
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Analysts give positive recommendations on stocks of digital transformation company Stagwell
Stagwell Inc., a company providing digital transformation, performance media and data, consumer insights and strategy, as well as creativity and communications services, has seen a number of equities research analysts provide recommendations on its stocks. In March, Rosenblatt Securities gave the company’s shares a “buy” rating with a $10.00 target price. Similarly, Wells Fargo & Company bestowed upon Stagwell an “overweight” rating with a $9.00 price target in May. The following month, Needham & Company LLC raised its price objective from $8.00 to $10.00 in their research note. Finally, Benchmark reaffirmed a “buy” rating and set a $13.00 price objective on shares of Stagwell.
The NASDAQ STGW was priced at $7.37 at market opening on Tuesday, giving it a market capitalization of over $2 billion along with a high P/E ratio of 73.70 and beta of 1.05.Stagwell has traded between its 1-year low of $4.80 and 1-year high of $9.23, maintained good liquidity with current ratio of 0.78 and quick ratio also stands strong at 0.78.The stock’s fifty day moving average came out to be around $6.54 while the 200-day moving average stood at approximately $6.76.
Stagwell offers a host of digital transformation services including designing and building digital platforms for delivery of content, commerce service and sales; creating websites, mobile applications among other digital environments; developing software using AI-based communications technologyfor e-commerce applications;producing specialty media solutions in augmented reality space among others.
Stagwell was recently in news after CAO Vincenzo Dimaggio bought 5,000 shares of the business’s stock valued at around $$$28k.Investment management companies increased their shareholdings — for instance, Hotchkis & Wiley Capital Management LLC increased its stake by 8.8% during the first quarter of 2021 and now owns over 18 million shares worth around $$$138 million. Similarly, Penn Capital Management Company LLC purchased a new stake in Stagwell worth around $$$10.5 million, while RK Capital Management LLC increased its positions in Stagwell by acquiring an additional 1 million plus shares.
Overall it seems that there is ample opportunity to invest in Stagwell with a strong potential for growth and positive market sentiment.Additionally with increasing investments by institutional investors,it has become the companyof interest for many investors.