Somnigroup International (NYSE:SGI) Stock Lifted to Strong-Buy by Zacks Research

Key Points

• Zacks Research upgraded Somnigroup International to “strong buy” from “hold.” The stock has a consensus “buy” rating among analysts, with an average price target of $95.
• SGI shares opened at $62.46, near their one-year low of $60.08 and below their 50-day and 200-day moving averages. The company met quarterly earnings expectations at $0.58 per share, while revenue fell 3% year over year to $1.82 billion.
• CEO Scott Thompson purchased 30,000 shares worth approximately $1.9 million, increasing his ownership by 0.73%. Institutional investors and hedge funds hold 99.86% of the company’s shares.

Somnigroup International (NYSE:SGI - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Wednesday, Zacks reports.

SGI has been the subject of several other research reports. Stephens upgraded Somnigroup International from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $66.00 to $80.00 in a report on Monday, September 14th. Zelman & Associates started coverage on Somnigroup International in a research report on Tuesday, June 23rd. They set an "outperform" rating and a $99.00 price target for the company. Piper Sandler reiterated an "overweight" rating and set a $100.00 price target (up from $95.00) on shares of Somnigroup International in a research note on Thursday, September 3rd. Weiss Ratings reissued a "hold (c+)" rating on shares of Somnigroup International in a report on Friday, August 21st. Finally, Morgan Stanley began coverage on Somnigroup International in a research note on Monday, July 27th. They issued an "overweight" rating and a $95.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $95.00.

Somnigroup International Stock Performance

Shares of Somnigroup International stock opened at $62.46 on Wednesday. The company has a market capitalization of $13.14 billion, a PE ratio of 24.98, a P/E/G ratio of 1.01 and a beta of 1.24. The company has a 50-day simple moving average of $65.02 and a two-hundred day simple moving average of $70.31. Somnigroup International has a one year low of $60.08 and a one year high of $98.56. The company has a debt-to-equity ratio of 1.33, a quick ratio of 0.37 and a current ratio of 0.75.

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 for the quarter, meeting analysts' consensus estimates of $0.58. The business had revenue of $1.82 billion for the quarter. Somnigroup International had a net margin of 7.00% and a return on equity of 19.32%. The firm's quarterly revenue was down 3.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.53 earnings per share. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. Research analysts expect that Somnigroup International will post 3.11 EPS for the current fiscal year.

Insider Transactions at Somnigroup International

In other Somnigroup International news, CEO Scott Thompson purchased 30,000 shares of the stock in a transaction on Thursday, August 27th. The shares were bought at an average cost of $62.84 per share, with a total value of $1,885,200.00. Following the completion of the acquisition, 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 ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. 3.99% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Somnigroup International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SGI. GAMMA Investing LLC lifted its holdings in shares of Somnigroup International by 27.1% in the 3rd quarter. GAMMA Investing LLC now owns 10,176 shares of the company's stock valued at $632,000 after buying an additional 2,170 shares during the period. Farther Finance Advisors LLC boosted its stake in shares of Somnigroup International by 3.7% during the 3rd quarter. Farther Finance Advisors LLC now owns 8,041 shares of the company's stock worth $499,000 after acquiring an additional 284 shares in the last quarter. Valeo Financial Advisors LLC acquired a new stake in shares of Somnigroup International during the 3rd quarter valued at about $299,000. Tactive Advisors LLC purchased a new position in shares of Somnigroup International in the 3rd quarter valued at about $418,000. Finally, Investors Research Corp purchased a new position in shares of Somnigroup International in the 3rd quarter valued at about $232,000. 99.86% of the stock is owned by institutional investors and hedge funds.

About Somnigroup International

Somnigroup International Inc is a global bedding company that designs, manufactures, distributes and sells mattresses, foundations, pillows, adjustable bases and other sleep-related products. The company serves consumers through wholesale distribution, company-operated and third-party retail locations, e-commerce platforms and hospitality channels.

Its portfolio includes well-known brands such as Tempur-Pedic, Sealy and Stearns & Foster, as well as products sold through the Mattress Firm retail banner.

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