What to Know About This Fund’s $28 Million Stagwell Buy After Record Client Wins
Key Points
ADW Capital acquired 5,000,000 shares in Stagwell during the first quarter; the estimated trade size was $27.96 million (based on average first-quarter 2026 pricing).
The quarter-end position value increased by $31.45 million, reflecting both share purchase and price movement.
The transaction represented a 10.87% increase in 13F reportable assets under management.
- 10 stocks we like better than Stagwell ›
On May 15, 2026, ADW Capital Management disclosed a new position in Stagwell (NASDAQ:STGW), acquiring five million shares—an estimated $27.96 million trade based on quarterly average pricing.
What happened
According to a SEC filing dated May 15, 2026, ADW Capital Management acquired 5,000,000 shares of Stagwell in the first quarter. The estimated transaction value was $27.96 million, calculated using the average unadjusted closing price for the quarter. The quarter-end value of the position reached $31.45 million, reflecting both new shares acquired and market price movement.
What else to know
- This marks a new position for the fund, with Stagwell representing 12.22% of 13F assets under management after the trade.
- Top five holdings after the filing:
- NYSE: APG: $60.06 million (26.2% of AUM)
- NASDAQ: DRVN: $50.44 million (22.0% of AUM)
- NASDAQ: STGW: $31.45 million (13.7% of AUM)
- NYSE: GFL: $42.14 million (18.4% of AUM)
- NYSE: CODI: $29.48 million (12.9% of AUM)
- As of Wednesday, Stagwell shares were priced at $6.22, up 24% over the past year, which is roughly in line with the S&P 500’s roughly 25% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.96 billion |
| Net income (TTM) | $19.05 million |
| Market capitalization | $1.5 billion |
| Price (as of Wednesday) | $6.22 |
Company snapshot
- Stagwell offers digital transformation, performance media and data, consumer insights, strategy, and creative communications services across integrated agency, media, and communications networks.
- The firm generates revenue through a combination of digital platform development, media buying and planning, technology products, and strategic advisory services for brands and marketers.
- It serves enterprise clients, in-house marketing teams, and organizations seeking technology-driven advertising and communications solutions, with a focus on digital-first engagement.
Stagwell is a leading provider of digital transformation and marketing services, operating at scale with over 13,000 employees and a global client base. The company leverages technology, data, and creative expertise to deliver integrated solutions spanning digital platforms, media, and communications.
What this transaction means for investors
Stagwell stock is trading roughly in line with the broader market over the past year, and it seems ADW may be seeing upside tied to execution rather than multiple expansion.
There are reasons to be bullish: On April 30, Stagwell reported first-quarter revenue growth of 8% to $704 million and net revenue growth of 4%, while its Digital Transformation segment grew net revenue 9% year over year. Perhaps most importantly, the company generated a record $141 million in net new business during the quarter and reiterated guidance calling for 8% to 12% net revenue growth in 2026. Adjusted EBITDA rose 9% to $90 million, while adjusted earnings per share increased 31% to $0.17.
Shares have been very volatile this past year, falling nearly 40% from January highs before recouping losses in the weeks after. But in the earnings release, CEO Mark Penn pointed to growing demand for agentic marketing applications and accelerating growth within the Digital Transformation business, and if that momentum continues, ADW’s bet could prove fruitful in the long-term.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends APi Group. The Motley Fool recommends GFL Environmental. The Motley Fool has a disclosure policy.
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