California State Teachers Retirement System Acquires 17,856,689 Shares of Somnigroup International Inc. $SGI

Key Points

• California State Teachers Retirement System increased its Somnigroup International stake by 7,702.3%, acquiring 17.86 million shares and bringing its ownership to 18.09 million shares, or 8.6% of the company.
• Somnigroup reported quarterly EPS of $0.58, in line with estimates, on $1.82 billion in revenue, though revenue declined 3% year over year. The company maintained a quarterly dividend of $0.17 per share, equal to a 1.0% annual yield.
• Analysts maintain a generally positive outlook, with seven Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $96.12, well above the reported $66.71 share price.

California State Teachers Retirement System lifted its holdings in shares of Somnigroup International Inc. (NYSE:SGI - Free Report) by 7,702.3% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 18,088,526 shares of the company's stock after purchasing an additional 17,856,689 shares during the period. California State Teachers Retirement System owned 8.60% of Somnigroup International worth $1,418,140,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently made changes to their positions in SGI. PNC Financial Services Group Inc. grew its position in shares of Somnigroup International by 1.3% during the 4th quarter. PNC Financial Services Group Inc. now owns 10,926 shares of the company's stock worth $975,000 after buying an additional 142 shares during the period. Platform Technology Partners boosted its holdings in Somnigroup International by 5.9% in the first quarter. Platform Technology Partners now owns 2,770 shares of the company's stock worth $205,000 after acquiring an additional 155 shares in the last quarter. Illinois Municipal Retirement Fund boosted its holdings in Somnigroup International by 0.5% in the fourth quarter. Illinois Municipal Retirement Fund now owns 32,172 shares of the company's stock worth $2,872,000 after acquiring an additional 172 shares in the last quarter. Janney Montgomery Scott LLC grew its stake in Somnigroup International by 1.0% in the fourth quarter. Janney Montgomery Scott LLC now owns 18,115 shares of the company's stock valued at $1,617,000 after acquiring an additional 173 shares during the period. Finally, Principal Securities Inc. grew its stake in Somnigroup International by 5.3% in the fourth quarter. Principal Securities Inc. now owns 3,573 shares of the company's stock valued at $319,000 after acquiring an additional 180 shares during the period. Institutional investors own 99.86% of the company's stock.

Somnigroup International Stock Performance

Shares of SGI opened at $66.71 on Friday. The firm has a market capitalization of $14.03 billion, a P/E ratio of 26.68, a P/E/G ratio of 1.09 and a beta of 1.19. Somnigroup International Inc. has a 52 week low of $60.39 and a 52 week high of $98.56. The stock has a 50 day moving average price of $68.36 and a two-hundred day moving average price of $72.82. 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 posted its 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 company had revenue of $1.82 billion for 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 down 3.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.53 EPS. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. Equities analysts forecast that Somnigroup International Inc. will post 3.11 earnings per share for the current fiscal year.

Somnigroup International Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th were paid a dividend of $0.17 per share. The ex-dividend date was Thursday, August 20th. This represents a $0.68 annualized dividend and a yield of 1.0%. Somnigroup International's dividend payout ratio (DPR) is 27.20%.

Insiders Place Their Bets

In other news, CEO Scott Thompson acquired 30,000 shares of the business's stock in a transaction on Thursday, August 27th. The shares were purchased 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 directly owned 4,123,634 shares of the company's stock, valued at $259,129,160.56. The trade was a 0.73% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.99% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. Piper Sandler reaffirmed an "overweight" rating and set a $100.00 target price (up from $95.00) on shares of Somnigroup International in a research report on Thursday, September 3rd. Wall Street Zen raised shares of Somnigroup International from a "sell" rating to a "hold" rating in a research report on Saturday, September 5th. Zelman & Associates started coverage on shares of Somnigroup International in a research report on Tuesday, June 23rd. They issued an "outperform" rating and a $99.00 price target for the company. Zacks Research upgraded shares of Somnigroup International from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 8th. Finally, Morgan Stanley started coverage on shares of Somnigroup International in a report on Monday, July 27th. They set an "overweight" rating and a $95.00 price objective on the stock. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $96.12.

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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