Piper Sandler Reaffirms Overweight Rating for Somnigroup International (NYSE:SGI)

Key Points

• Piper Sandler reaffirmed its “overweight” rating on Somnigroup International and raised its price target from $95 to $100, implying approximately 43% upside from the stock’s $69.95 price.
• Analyst sentiment remains favorable overall, with seven Buy ratings, two Holds, and one Sell; the consensus rating is “Moderate Buy” with an average price target of $96.12.
• Somnigroup reported quarterly EPS of $0.58, matching estimates, while revenue fell 3% year over year to $1.82 billion. CEO Scott Thompson also purchased 30,000 shares worth about $1.9 million.

Somnigroup International (NYSE:SGI - Get Free Report)'s stock had its "overweight" rating restated by investment analysts at Piper Sandler in a research report issued to clients and investors on Thursday, Benzinga reports. They presently have a $100.00 price objective on the stock, up from their prior price objective of $95.00. Piper Sandler's price target points to a potential upside of 42.96% from the stock's current price.

SGI has been the topic of a number of other reports. Wall Street Zen lowered shares of Somnigroup International from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Zelman & Associates began coverage on Somnigroup International in a report on Tuesday, June 23rd. They issued an "outperform" rating and a $99.00 price target for the company. Weiss Ratings reissued a "hold (c+)" rating on shares of Somnigroup International in a research note on Friday, August 21st. Morgan Stanley started coverage on shares of Somnigroup International in a report on Monday, July 27th. They issued an "overweight" rating and a $95.00 price objective on the stock. Finally, Truist Financial lowered 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 note on Friday, August 7th. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Somnigroup International currently has a consensus rating of "Moderate Buy" and an average target price of $96.12.

Somnigroup International Stock Performance

Shares of SGI stock traded up $2.13 during trading hours on Thursday, reaching $69.95. 2,226,538 shares of the company traded hands, compared to its average volume of 2,736,701. Somnigroup International has a 12-month low of $60.39 and a 12-month high of $98.56. The company has a debt-to-equity ratio of 1.33, a current ratio of 0.75 and a quick ratio of 0.37. The company has a market cap of $14.72 billion, a P/E ratio of 28.01, a P/E/G ratio of 1.43 and a beta of 1.19. The firm has a 50-day moving average price of $69.72 and a 200 day moving average price of $73.83.

Somnigroup International (NYSE:SGI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.58 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.58. Somnigroup International had a net margin of 7.00% and a return on equity of 19.32%. The company had revenue of $1.82 billion for the quarter. During the same period in the previous year, the company earned $0.53 EPS. Somnigroup International's revenue for the quarter was down 3.0% compared to the same quarter last year. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. As a group, sell-side analysts predict that Somnigroup International will post 3.02 earnings per share for the current fiscal year.

Insider Buying and Selling at Somnigroup International

In related news, CEO Scott L. Thompson acquired 30,000 shares of the company's stock in a transaction dated Thursday, August 27th. The stock was bought at an average price of $62.84 per share, with a total value of $1,885,200.00. Following the purchase, the chief executive officer directly owned 4,123,634 shares in the company, valued at $259,129,160.56. The trade was a 0.73% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 3.99% of the stock is currently owned by corporate insiders.

Institutional Trading of Somnigroup International

Several large investors have recently bought and sold shares of the company. Core Wealth Advisors LLC bought a new stake in shares of Somnigroup International in the fourth quarter worth $30,000. Allworth Financial LP acquired a new position in Somnigroup International in the second quarter worth about $31,000. Elyxium Wealth LLC bought a new stake in Somnigroup International in the fourth quarter valued at about $35,000. Danske Bank A S acquired a new position in Somnigroup International in the second quarter worth $39,000. Finally, Hilton Head Capital Partners LLC acquired a new position in shares of Somnigroup International in the 4th quarter valued at about $42,000. Institutional investors and hedge funds own 99.86% of the company's stock.

About Somnigroup International

Somnigroup International Inc, together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the Tempur-Pedic, Sealy, Stearns & Foster, Sealy, and Cocoon by Sealy brand names. The company sells its products through approximately company-owned stores, online, and call centers; and third party retailers, including third party distribution, hospitality, and healthcare.

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