Somnigroup International (NYSE:SGI) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Somnigroup International from “strong buy” to “hold.” Despite the move, analysts overall maintain a “Moderate Buy” consensus, with an average price target of $95.
• SGI shares fell 5.4% to $64.18 in Thursday trading. The company matched quarterly EPS estimates at $0.58, while revenue of $1.82 billion declined 3% year over year.
• CEO Scott Thompson bought 30,000 shares at an average price of $62.84, increasing his ownership by 0.73%.

Somnigroup International (NYSE:SGI - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Thursday, Zacks reports.

Other research analysts have also recently issued reports about the company. Truist Financial decreased their target price on Somnigroup International from $115.00 to $100.00 and set a "buy" rating for the company in a research note on Friday, August 7th. Stephens upgraded shares of Somnigroup International from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $66.00 to $80.00 in a research note on Monday, September 14th. Piper Sandler restated an "overweight" rating and issued a $100.00 price objective (up from $95.00) on shares of Somnigroup International in a research note on Thursday, September 3rd. Wall Street Zen upgraded Somnigroup International from a "sell" rating to a "hold" rating in a research note on Saturday, September 5th. Finally, UBS Group increased their price target on Somnigroup International from $94.00 to $102.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Eight analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Somnigroup International presently has an average rating of "Moderate Buy" and a consensus target price of $95.00.

Somnigroup International Trading Down 5.4%

Shares of NYSE SGI traded down $3.69 during mid-day trading on Thursday, hitting $64.18. The company's stock had a trading volume of 7,195,013 shares, compared to its average volume of 2,527,498. Somnigroup International has a one year low of $60.08 and a one year high of $98.56. The stock has a market cap of $13.50 billion, a price-to-earnings ratio of 25.67, a price-to-earnings-growth ratio of 1.09 and a beta of 1.30. 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's fifty day simple moving average is $64.44 and its 200-day simple moving average is $73.22.

Somnigroup International (NYSE:SGI - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.58 EPS for the quarter, hitting analysts' consensus estimates of $0.58. The firm had revenue of $1.82 billion during the quarter. Somnigroup International had a net margin of 7.00% and a return on equity of 19.32%. Somnigroup International's revenue was down 3.0% on a year-over-year basis. During the same period in the prior year, the firm posted $0.53 EPS. On average, sell-side analysts anticipate that Somnigroup International will post 3.10 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Scott Thompson purchased 30,000 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were bought at an average price of $62.84 per share, for a total transaction of $1,885,200.00. Following the completion of the transaction, the chief executive officer owned 4,123,634 shares of the company's stock, valued at approximately $259,129,160.56. This trade represents a 0.73% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 3.99% of the company's stock.

Hedge Funds Weigh In On Somnigroup International

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Mather Group LLC. boosted its position in Somnigroup International by 168.8% during the 3rd quarter. Mather Group LLC. now owns 414 shares of the company's stock worth $26,000 after buying an additional 260 shares during the period. Salomon & Ludwin LLC lifted its holdings in shares of Somnigroup International by 772.0% during the third quarter. Salomon & Ludwin LLC now owns 436 shares of the company's stock worth $27,000 after purchasing an additional 386 shares during the period. SBI Securities Co. Ltd. lifted its holdings in shares of Somnigroup International by 11,900.0% during the third quarter. SBI Securities Co. Ltd. now owns 480 shares of the company's stock worth $30,000 after purchasing an additional 476 shares during the period. Signature Equity Partners LLC grew its stake in shares of Somnigroup International by 173.1% in the third quarter. Signature Equity Partners LLC now owns 478 shares of the company's stock worth $30,000 after purchasing an additional 303 shares during the last quarter. Finally, Allworth Financial LP bought a new stake in shares of Somnigroup International in the second quarter worth $31,000. Institutional investors own 99.86% of the company's stock.

About Somnigroup International

Somnigroup International Inc NYSE: SGI is a global bedding and sleep-products company. Its portfolio includes mattresses, pillows, adjustable bases, foundations, bed frames and other sleep-related products sold through retail stores, e-commerce channels and furniture and specialty retailers.

The company's principal brands include Tempur-Pedic, Sealy and Stearns & Foster. Somnigroup also operates Mattress Firm, a large specialty mattress retailer in the United States, providing consumers with access to a broad range of bedding products from its own brands and other manufacturers.

Somnigroup International was formerly known as Tempur Sealy International.

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