Stagwell Inc. [NASDAQ: STGW] loss -22.53% or -1.98 points to close at $6.81 with a heavy trading volume of 3993497 shares. The company report on March 9, 2023 that Stagwell (Nasdaq: STGW) Announces Pricing of Secondary Offering of Class A Common Stock.
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Stagwell Inc. (Nasdaq: STGW) (“Stagwell” or the “Company”), the challenger network built to transform marketing, today announced the pricing of its previously announced underwritten public offering of an aggregate of 16,000,000 shares of its Class A common stock, par value $0.001 per share (the “Class A Common Stock”), by entities affiliated with The Stagwell Group LLC and Goldman Sachs (collectively, the “Selling Stockholders”) at a public offering price of $6.75 per share. The offering is expected to close on or about March 14, 2023, subject to satisfaction of customary closing conditions. The Selling Stockholders also granted the underwriters a 30-day option to purchase up to an additional 2,400,000 shares of Class A Common Stock at the public offering price, less underwriting discounts and commissions. The Company will not receive any proceeds from the sale of shares in the offering.
Morgan Stanley and Goldman Sachs & Co. LLC are acting as joint lead book-running managers and as representatives of the underwriters for the offering, SVB Securities LLC and Wells Fargo Securities, LLC are also acting as joint book-running managers for the offering. Rosenblatt Securities Inc. is acting as co-manager for the offering.
It opened the trading session at $8.25, the shares rose to $8.26 and dropped to $6.60, the range by which the price of stock traded the whole day. The daily chart for STGW points out that the company has recorded 0.00% loss over the past six months. However, it is still -41.87% lower than its most recent low trading price.
If we look at the average trading volume of 501.35K shares, STGW reached to a volume of 3993497 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Stagwell Inc. [STGW]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for STGW shares is $11.60 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on STGW stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Rosenblatt have made an estimate for Stagwell Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 02, 2023. While these analysts kept the previous recommendation, B. Riley Securities raised their target price to Buy. The new note on the price target was released on November 15, 2022, representing the official price target for Stagwell Inc. stock. Previously, the target price had yet another raise to $10, while Stephens analysts kept a Overweight rating on STGW stock.
The Average True Range (ATR) for Stagwell Inc. is set at 0.56, with the Price to Sales ratio for STGW stock in the period of the last 12 months amounting to 0.71. The Price to Book ratio for the last quarter was 2.94, with the Price to Cash per share for the same quarter was set at 0.59. Price to Free Cash Flow for STGW in the course of the last twelve months was 57.47 with Quick ratio for the last quarter at 0.90.
Trading performance analysis for STGW stock
Stagwell Inc. [STGW] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -10.16. With this latest performance, STGW shares dropped by -3.27% in over the last four-week period, additionally sinking by 0.00% over the last 6 months – not to mention a drop of -7.35% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for STGW stock in for the last two-week period is set at 43.96, with the RSI for the last a single of trading hit 40.07, and the three-weeks RSI is set at 46.03 for Stagwell Inc. [STGW]. The present Moving Average for the last 50 days of trading for this stock 6.97, while it was recorded at 8.36 for the last single week of trading, and 6.92 for the last 200 days.
Stagwell Inc. [STGW]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Stagwell Inc. [STGW] shares currently have an operating margin of +10.47 and a Gross Margin at +32.85. Stagwell Inc.’s Net Margin is presently recorded at +1.01.
Return on Equity for this stock inclined to 6.39, with Return on Assets sitting at 0.68.
Stagwell Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.
Stagwell Inc. [STGW]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for STGW. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Stagwell Inc. go to 6.00%.
An analysis of insider ownership at Stagwell Inc. [STGW]
There are presently around $747 million, or 91.20% of STGW stock, in the hands of institutional investors. The top three institutional holders of STGW stocks are: STAGWELL GROUP LLC with ownership of 26,502,414, which is approximately 0% of the company’s market cap and around 2.10% of the total institutional ownership; GOLDMAN SACHS GROUP INC, holding 20,965,405 shares of the stock with an approximate value of $142.77 million in STGW stocks shares; and HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC, currently with $116.34 million in STGW stock with ownership of nearly -1.655% of the company’s market capitalization.
Positions in Stagwell Inc. stocks held by institutional investors increased at the end of Thursday and at the time of the Thursday reporting period, where 59 institutional holders increased their position in Stagwell Inc. [NASDAQ:STGW] by around 2,258,964 shares. Additionally, 48 investors decreased positions by around 5,034,552 shares, while 21 investors held positions by with 102,447,436 shares. The mentioned changes placed institutional holdings at 109,740,952 shares, according to the latest SEC report filing. STGW stock had 21 new institutional investments in for a total of 299,529 shares, while 18 institutional investors sold positions of 952,082 shares during the same period.