Morgan Stanley Issues Pessimistic Forecast for Somnigroup International (NYSE:SGI) Stock Price

Key Points

• Morgan Stanley cut its price target on Somnigroup from $95 to $90 but maintained an “overweight” rating; the new target implies about 41.7% upside from the stock’s $63.50 price.
• Somnigroup’s quarterly revenue rose 10.8% year over year to $2.35 billion, but EPS of $1.04 fell slightly short of the $1.06 consensus. Its 2026 EPS guidance of $2.85–$2.95 is also below analyst expectations.
• Analyst sentiment remains broadly positive: the stock has a “Moderate Buy” consensus rating and a $95 average price target, despite several firms recently lowering their targets.

Somnigroup International (NYSE:SGI - Get Free Report) had its price target reduced by equities research analysts at Morgan Stanley from $95.00 to $90.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm currently has an "overweight" rating on the stock. Morgan Stanley's target price indicates a potential upside of 41.73% from the stock's current price.

Other equities analysts have also recently issued reports about the stock. Truist Financial decreased their price objective on shares of Somnigroup International from $115.00 to $100.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Piper Sandler reaffirmed an "overweight" rating and set a $100.00 target price (up from $95.00) on shares of Somnigroup International in a research report on Thursday, September 3rd. KeyCorp cut their price target on Somnigroup International from $105.00 to $100.00 and set an "overweight" rating on the stock in a research note on Tuesday. UBS Group increased their price target on Somnigroup International from $94.00 to $102.00 and gave the company a "buy" rating in a report on Thursday, September 3rd. Finally, Wall Street Zen upgraded Somnigroup International from a "sell" rating to a "hold" rating in a research note on Saturday, September 5th. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $95.00.

Somnigroup International Stock Down 4.2%

NYSE SGI traded down $2.77 on Tuesday, reaching $63.50. The company had a trading volume of 1,913,953 shares, compared to its average volume of 2,815,104. The firm has a market capitalization of $13.36 billion, a PE ratio of 25.34, a P/E/G ratio of 1.14 and a beta of 1.30. Somnigroup International has a 1 year low of $60.08 and a 1 year high of $98.56. The firm has a 50-day moving average of $64.48 and a 200-day moving average of $73.08. The company has a debt-to-equity ratio of 1.33, a current ratio of 0.75 and a quick ratio of 0.37.

Somnigroup International (NYSE:SGI - Get Free Report) last posted its quarterly earnings data on Monday, November 9th. The company reported $1.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.06 by ($0.02). Somnigroup International had a net margin of 7.00% and a return on equity of 19.32%. The firm had revenue of $2.35 billion for the quarter. During the same quarter in the prior year, the company earned $0.95 EPS. The firm's revenue for the quarter was up 10.8% on a year-over-year basis. Somnigroup International has set its FY 2026 guidance at 2.850-2.950 EPS. On average, equities research analysts anticipate that Somnigroup International will post 3.10 EPS for the current fiscal year.

Insider Activity

In related news, CEO Scott Thompson bought 30,000 shares of the business's stock in a transaction dated Thursday, August 27th. The shares were acquired at an average price of $62.84 per share, for a total transaction of $1,885,200.00. Following the purchase, the chief executive officer owned 4,123,634 shares in the company, valued at $259,129,160.56. This trade represents a 0.73% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 3.99% of the company's stock.

Institutional Trading of Somnigroup International

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of America Corp DE acquired a new position in shares of Somnigroup International during the second quarter worth approximately $204,632,000. Two Sigma Securities LLC bought a new position in Somnigroup International in the 2nd quarter worth approximately $1,379,000. Tidal Investments LLC increased its position in Somnigroup International by 49.4% in the 2nd quarter. Tidal Investments LLC now owns 184,212 shares of the company's stock valued at $14,442,000 after acquiring an additional 60,942 shares during the period. Polar Asset Management Partners Inc. acquired a new stake in Somnigroup International in the 2nd quarter valued at approximately $2,305,000. Finally, Salvus Wealth Management LLC increased its position in Somnigroup International by 31.5% in the 3rd quarter. Salvus Wealth Management LLC now owns 73,425 shares of the company's stock valued at $4,560,000 after acquiring an additional 17,574 shares during the period. 99.86% of the stock is owned by institutional investors.

Key Headlines Impacting Somnigroup International

Here are the key news stories impacting Somnigroup International this week:

• Positive Sentiment: Somnigroup reported record third-quarter net sales of about $2.4 billion, up 11% year over year. Adjusted EPS rose 9.5% to $1.04, and operating cash flow was $349 million. Somnigroup third-quarter results
• Positive Sentiment: The company declared a quarterly dividend of $0.17 per share, payable December 7 to shareholders of record November 23. Dividend announcement
• Neutral Sentiment: KeyCorp lowered its price target to $100 from $105 but maintained an “overweight” rating, signaling continued optimism despite the reduced target.
• Negative Sentiment: Adjusted EPS of $1.04 narrowly missed the $1.06 consensus estimate. More notably, 2026 EPS guidance of $2.85–$2.95 is below the approximately $3.11 analyst consensus, a likely source of investor concern. Q3 earnings and estimates

About Somnigroup International

Somnigroup International, Inc. is a bedding company that designs, manufactures, distributes and sells mattresses and related sleep products. Its offerings include adjustable bases, pillows and other bedding accessories, marketed under brands such as Tempur-Pedic, Sealy and Stearns & Foster. The company also operates Mattress Firm, a mattress retailer with stores across the United States. Through its brands, retail business and other sales channels, Somnigroup serves customers in the U.S. and international markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.