Somnigroup International (NYSE:SGI) Raised to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Somnigroup International from “strong sell” to “hold.” Overall analyst sentiment remains “Moderate Buy,” with seven Buy ratings, three Holds, and a consensus price target of $96.12.
• SGI shares opened at $68.28 and remain well below the 12-month high of $98.56. The company matched quarterly earnings expectations at $0.58 per share on $1.82 billion in revenue, though revenue declined 3% year over year.
• CEO Scott Thompson bought 30,000 shares for approximately $1.89 million, while institutional investors own 99.86% of the company’s stock.

Somnigroup International (NYSE:SGI - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Tuesday, Zacks reports.

A number of other equities analysts also recently commented on SGI. Piper Sandler restated an "overweight" rating and set a $100.00 target price (up from $95.00) on shares of Somnigroup International in a report on Thursday, September 3rd. Weiss Ratings restated a "hold (c+)" rating on shares of Somnigroup International in a research note on Friday, August 21st. Wall Street Zen raised shares of Somnigroup International from a "sell" rating to a "hold" rating in a report on Saturday, September 5th. Zelman & Associates assumed coverage on Somnigroup International in a report on Tuesday, June 23rd. They set an "outperform" rating and a $99.00 price target on the stock. Finally, Truist Financial dropped their target price on shares of Somnigroup International from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $96.12.

Somnigroup International Stock Down 1.8%

Shares of NYSE:SGI opened at $68.28 on Tuesday. The company has a current ratio of 0.75, a quick ratio of 0.37 and a debt-to-equity ratio of 1.33. The stock's 50-day moving average price is $68.84 and its 200-day moving average price is $73.04. The stock has a market capitalization of $14.36 billion, a P/E ratio of 27.31, a price-to-earnings-growth ratio of 1.15 and a beta of 1.19. Somnigroup International has a 12-month low of $60.39 and a 12-month high of $98.56.

Somnigroup International (NYSE:SGI - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.58 earnings per share for the quarter, meeting the consensus estimate of $0.58. Somnigroup International had a return on equity of 19.32% and a net margin of 7.00%.The firm had revenue of $1.82 billion during the quarter. During the same quarter in the previous year, the firm posted $0.53 EPS. The business'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. On average, equities analysts anticipate that Somnigroup International will post 3.07 earnings per share for the current year.

Insider Activity

In other Somnigroup International news, CEO Scott Thompson purchased 30,000 shares of the business's stock in a transaction on Thursday, August 27th. The stock was 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 of the company's stock, valued at approximately $259,129,160.56. This represents a 0.73% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 3.99% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP bought a new stake in shares of Somnigroup International during the third quarter valued at approximately $32,000. Truist Financial Corp grew its stake in Somnigroup International by 13.1% during the fourth quarter. Truist Financial Corp now owns 20,043 shares of the company's stock valued at $1,789,000 after acquiring an additional 2,322 shares in the last quarter. Sequoia Financial Advisors LLC grew its stake in Somnigroup International by 42.7% during the fourth quarter. Sequoia Financial Advisors LLC now owns 5,414 shares of the company's stock valued at $483,000 after acquiring an additional 1,621 shares in the last quarter. Ethic Inc. grew its stake in Somnigroup International by 16.0% during the fourth quarter. Ethic Inc. now owns 13,986 shares of the company's stock valued at $1,249,000 after acquiring an additional 1,926 shares in the last quarter. Finally, Crossmark Global Holdings Inc. increased its holdings in Somnigroup International by 4.7% in the 4th quarter. Crossmark Global Holdings Inc. now owns 10,548 shares of the company's stock valued at $942,000 after acquiring an additional 471 shares during the last quarter. 99.86% of the stock is currently owned by institutional investors.

Somnigroup International Company Profile

Somnigroup International Inc is a global sleep products company that designs, manufactures, distributes and sells mattresses, pillows, adjustable bases, foundations and other bedding products. The company serves consumers through a combination of wholesale, direct-to-consumer and retail channels, including company-operated and franchised retail locations.

Somnigroup's portfolio includes well-known brands such as Tempur-Pedic, Sealy, Stearns & Foster and Cocoon by Sealy. Following its combination with Mattress Firm, the company also operates one of the largest mattress specialty retail platforms in North America, offering products from its own brands as well as other manufacturers.

The company traces its roots to Tempur Sealy International, which was formed through the combination of Tempur-Pedic and Sealy.

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