Somnigroup International Inc. (NYSE:SGI) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Somnigroup International has a “Moderate Buy” consensus rating: Eight of 10 analysts recommend buying the stock, while two rate it a hold. The average 12-month price target is $95, implying substantial upside from its $63.31 opening price.
• The company’s latest quarter met expectations with earnings of $0.58 per share on $1.82 billion in revenue, though revenue declined 3% year over year. Management’s fiscal 2026 EPS guidance is $2.85–$3.15, compared with analysts’ $3.11 estimate.
• Somnigroup paid a quarterly dividend of $0.17 per share, equal to a 1.1% annualized yield, while CEO Scott Thompson purchased 30,000 shares worth approximately $1.9 million. Institutional investors own 99.86% of the company.

Somnigroup International Inc. (NYSE:SGI - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the ten ratings firms that are currently covering the stock, MarketBeat.com reports. Two equities research analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $95.00.

A number of brokerages recently commented on SGI. UBS Group lifted their target price on shares of Somnigroup International from $94.00 to $102.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Truist Financial cut their price target on shares of Somnigroup International from $115.00 to $100.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Morgan Stanley began coverage on Somnigroup International in a research note on Monday, July 27th. They set an "overweight" rating and a $95.00 price objective on the stock. Wall Street Zen raised Somnigroup International from a "sell" rating to a "hold" rating in a research note on Saturday, September 5th. Finally, Piper Sandler reissued an "overweight" rating and issued a $100.00 target price (up from $95.00) on shares of Somnigroup International in a research note on Thursday, September 3rd.

Somnigroup International Stock Down 0.1%

Shares of NYSE SGI opened at $63.31 on Monday. The stock has a market capitalization of $13.32 billion, a P/E ratio of 25.33, a PEG ratio of 1.04 and a beta of 1.19. Somnigroup International has a one year low of $60.39 and a one year high of $98.56. The firm's 50 day simple moving average is $67.38 and its two-hundred day simple moving average is $71.90. The company has a debt-to-equity ratio of 1.33, a current ratio of 0.75 and a quick ratio of 0.37.

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, hitting analysts' consensus estimates of $0.58. Somnigroup International had a net margin of 7.00% and a return on equity of 19.32%. The firm had revenue of $1.82 billion during the quarter. During the same quarter in the previous year, the firm posted $0.53 earnings per share. The company's revenue 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, analysts expect that Somnigroup International will post 3.11 EPS for the current fiscal year.

Somnigroup International Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th were paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Thursday, August 20th. Somnigroup International's dividend payout ratio is 27.20%.

Insider Activity

In other news, CEO Scott Thompson bought 30,000 shares of the business's stock in a transaction dated Thursday, August 27th. The shares were purchased at an average price of $62.84 per share, for a total transaction of $1,885,200.00. Following the completion of the acquisition, 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 transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Corporate insiders own 3.99% of the company's stock.

Hedge Funds Weigh In On Somnigroup International

A number of hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of Somnigroup International during the second quarter worth about $1,507,604,000. Linonia Partnership LP bought a new position in Somnigroup International during the 2nd quarter valued at approximately $519,372,000. Geode Capital Management LLC raised its position in Somnigroup International by 9.3% during the 4th quarter. Geode Capital Management LLC now owns 4,375,264 shares of the company's stock valued at $390,699,000 after purchasing an additional 371,234 shares during the last quarter. Artisan Partners Limited Partnership purchased a new stake in Somnigroup International in the 4th quarter worth approximately $274,323,000. Finally, Allspring Global Investments Holdings LLC lifted its holdings in Somnigroup International by 62.5% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 3,046,320 shares of the company's stock worth $224,240,000 after buying an additional 1,171,485 shares during the period. Hedge funds and other institutional investors own 99.86% of the company's stock.

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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