Why Stagwell Stock Zoomed Nearly 20% Higher on Hump Day
Healthcare-focused media and public relations agency (NASDAQ: STGW) managed to generate its own positive publicity on Wednesday. The company announced a large asset sale, and investors were pleased with the news as evidenced by the stock's nearly 20% rise across that trading day. This made it something of a standout on a day when the gloomy S 500 index declined by 1.4%.
That afternoon, Stagwell announced that it agreed to sell ConcentricLife, its marketing agency and pharmaceutical-commercialization vehicle, to consultancy Accenture. The ultimate recipient will be the latter company's Accenture Song creative unit, and the price is $245 million in cash.
The move is part of a slimming and consolidation effort by Stagwell. Under this strategy, it will narrow its focus to its core digital services.
Source Fool.com
