Somnigroup International Inc. (NYSE:SGI) Stock Now Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analysts rate Somnigroup a “Moderate Buy”: Eight of ten covering firms recommend buying the stock, and the average 12-month price target is $95.
• Quarterly sales grew, but results missed estimates: Revenue rose 10.8% year over year to $2.35 billion, while adjusted EPS of $1.04 came in below the $1.06 consensus. FY 2026 EPS guidance of $2.85–$2.95 is also below analyst expectations.
• The company declared a quarterly dividend of $0.17 per share, equivalent to $0.68 annually and a 1.0% yield.

Somnigroup International Inc. (NYSE:SGI - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the ten research firms that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $95.00.

Several analysts have issued reports on the company. Zacks Research downgraded Somnigroup International from a "strong-buy" rating to a "hold" rating in a research note on Thursday, November 5th. 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 report on Thursday, September 3rd. UBS Group boosted their target price on Somnigroup International from $94.00 to $102.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Truist Financial reduced their price target on Somnigroup International from $115.00 to $100.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Finally, Stephens raised Somnigroup International from an "equal weight" rating to an "overweight" rating and upped their price target for the stock from $66.00 to $80.00 in a research report on Monday, September 14th.

Somnigroup International Price Performance

Somnigroup International stock opened at $66.53 on Tuesday. The business's fifty day moving average is $64.48 and its two-hundred day moving average is $73.08. 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 firm has a market cap of $14.00 billion, a P/E ratio of 26.61, a P/E/G ratio of 1.14 and a beta of 1.30. Somnigroup International has a 52 week low of $60.08 and a 52 week high of $98.56.

Somnigroup International (NYSE:SGI - Get Free Report) last announced its quarterly earnings data on Monday, November 9th. The company reported $1.04 EPS for the quarter, missing analysts' consensus estimates of $1.06 by ($0.02). The firm had revenue of $2.35 billion during the quarter. Somnigroup International had a return on equity of 19.32% and a net margin of 7.00%. The firm's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period last year, the firm posted $0.95 EPS. Somnigroup International has set its FY 2026 guidance at 2.850-2.950 EPS. Equities research analysts forecast that Somnigroup International will post 3.10 earnings per share for the current fiscal year.

Somnigroup International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 7th. Stockholders of record on Monday, November 23rd will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Monday, November 23rd. Somnigroup International's payout ratio is currently 27.20%.

Key Headlines Impacting Somnigroup International

Here are the key news stories impacting Somnigroup International this week:

• Positive Sentiment: Somnigroup posted record third-quarter net sales of about $2.4 billion, up 11% year over year. Adjusted EPS rose 9.5% to $1.04, and cash flow from operations was a strong $349 million. Somnigroup Q3 results
• Positive Sentiment: The company declared a quarterly dividend of $0.17 per share, payable December 7 to shareholders of record November 23. Dividend announcement
• Negative Sentiment: Adjusted EPS of $1.04 missed the $1.06 consensus, and revenue also lagged analyst estimates despite year-over-year growth. GAAP EPS fell 10.8% to $0.74. Q3 estimates report
• Negative Sentiment: Somnigroup’s FY 2026 EPS guidance of $2.85–$2.95 is below the analyst consensus of $3.11, signaling a weaker earnings outlook than expected. Q3 results and updated guidance

Insiders Place Their Bets

In related news, CEO Scott Thompson bought 30,000 shares of Somnigroup International stock in a transaction dated 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 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 position. The transaction was disclosed in a document filed with the SEC, which is available through this link. 3.99% of the stock is owned by company insiders.

Hedge Funds Weigh In On Somnigroup International

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

About Somnigroup International

Somnigroup International, Inc is a bedding company that designs, manufactures, distributes and sells mattresses and related sleep products. Its offerings include adjustable bases, pillows and other bedding accessories, marketed under brands such as Tempur-Pedic, Sealy and Stearns & Foster.

The company also operates Mattress Firm, a mattress retailer with stores across the United States. Through its brands, retail business and other sales channels, Somnigroup serves customers in the U.S.

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