Stephens Upgrades Somnigroup International (NYSE:SGI) to "Overweight"

Key Points

• Stephens upgraded Somnigroup International to “overweight” from “equal weight” and raised its price target to $80 from $66, implying nearly 20% upside from the previous close.
• Analyst sentiment is broadly positive, with eight Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $95. Other firms’ targets range as high as $102.
• SGI reported quarterly EPS in line with estimates at $0.58, while revenue fell 3% year over year to $1.82 billion. CEO Scott Thompson also bought 30,000 shares, and institutional investors own 99.86% of the stock.

Somnigroup International (NYSE:SGI - Get Free Report) was upgraded by analysts at Stephens from an "equal weight" rating to an "overweight" rating in a report issued on Monday, Benzinga reports. The brokerage currently has a $80.00 price objective on the stock, up from their prior price objective of $66.00. Stephens' price objective points to a potential upside of 19.92% from the company's previous close.

Several other research analysts also recently commented on SGI. Zelman & Associates assumed coverage on shares of Somnigroup International in a report on Tuesday, June 23rd. They set an "outperform" rating and a $99.00 price objective for the company. Wall Street Zen upgraded Somnigroup International from a "sell" rating to a "hold" rating in a research report on Saturday, September 5th. Weiss Ratings reissued a "hold (c+)" rating on shares of Somnigroup International in a research note on Friday, August 21st. Morgan Stanley began coverage on Somnigroup International in a report on Monday, July 27th. They set an "overweight" rating and a $95.00 price target for the company. Finally, UBS Group lifted their price objective on Somnigroup International from $94.00 to $102.00 and gave the stock a "buy" rating in a research note on Thursday, September 3rd. Eight investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $95.00.

Somnigroup International Trading Down 0.1%

Shares of SGI stock opened at $66.71 on Monday. The company has a debt-to-equity ratio of 1.33, a quick ratio of 0.37 and a current ratio of 0.75. The stock has a fifty day simple moving average of $68.36 and a two-hundred day simple moving average of $72.72. The firm has a market capitalization of $14.03 billion, a PE ratio of 26.68, a PEG ratio of 1.09 and a beta of 1.19. Somnigroup International has a 52-week low of $60.39 and a 52-week high of $98.56.

Somnigroup International (NYSE:SGI - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.58 earnings per share for the quarter, hitting analysts' consensus estimates 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 period last year, the company earned $0.53 EPS. The business's revenue was down 3.0% on a year-over-year basis. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. On average, analysts predict that Somnigroup International will post 3.11 EPS for the current fiscal year.

Insider Transactions at Somnigroup International

In related news, CEO Scott Thompson acquired 30,000 shares of the stock in a transaction dated Thursday, August 27th. The stock was acquired at an average cost 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 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 transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 3.99% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

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

About Somnigroup International

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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