K.J. Harrison & Partners Inc Reduces Holdings in Somnigroup International Inc. $SGI

Key Points

• K.J. Harrison & Partners cut its stake in Somnigroup by 89.7% in Q4 to 3,000 shares (worth $268,000), part of broader institutional repositioning that coincided with the stock trading down about 10.4%.
• Somnigroup beat Q1 expectations with adjusted EPS of $0.59 (vs. $0.57) and revenue of $1.80B (+12.3% YoY), delivered record operating cash flow of $246M, and declared a $0.17 quarterly dividend (1.0% yield).
• Management reaffirmed FY26 adjusted EPS guidance of $3.00–$3.40 and the consensus is a "Moderate Buy" (avg. target ~$99.60), but investors remain wary of Mattress Firm margin pressure and deal-related costs tied to the proposed Leggett & Platt acquisition.

K.J. Harrison & Partners Inc reduced its position in Somnigroup International Inc. (NYSE:SGI - Free Report) by 89.7% in the 4th quarter, according to its most recent filing with the SEC. The firm owned 3,000 shares of the company's stock after selling 26,000 shares during the period. K.J. Harrison & Partners Inc's holdings in Somnigroup International were worth $268,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Allworth Financial LP purchased a new stake in Somnigroup International in the 3rd quarter worth approximately $32,000. First Horizon Corp grew its stake in Somnigroup International by 93.3% in the 4th quarter. First Horizon Corp now owns 464 shares of the company's stock worth $41,000 after acquiring an additional 224 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Somnigroup International in the 4th quarter worth approximately $42,000. Assetmark Inc. grew its stake in Somnigroup International by 56.6% in the 4th quarter. Assetmark Inc. now owns 512 shares of the company's stock worth $46,000 after acquiring an additional 185 shares during the period. Finally, CWM LLC grew its stake in Somnigroup International by 15.5% in the 4th quarter. CWM LLC now owns 1,858 shares of the company's stock worth $166,000 after acquiring an additional 249 shares during the period. 99.86% of the stock is owned by hedge funds and other institutional investors.

Somnigroup International Trading Down 10.4%

Shares of Somnigroup International stock opened at $70.47 on Friday. The business's fifty day simple moving average is $78.29. The company has a current ratio of 0.83, a quick ratio of 0.42 and a debt-to-equity ratio of 1.47. Somnigroup International Inc. has a twelve month low of $56.15 and a twelve month high of $98.56. The stock has a market cap of $14.82 billion, a PE ratio of 39.37, a price-to-earnings-growth ratio of 1.23 and a beta of 1.25.

Somnigroup International (NYSE:SGI - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.59 earnings per share for the quarter, topping analysts' consensus estimates of $0.57 by $0.02. Somnigroup International had a net margin of 5.14% and a return on equity of 19.36%. The firm had revenue of $1.80 billion during the quarter. During the same period last year, the company posted $0.49 earnings per share. The firm's revenue for the quarter was up 12.3% on a year-over-year basis. Somnigroup International has set its FY 2026 guidance at 3.000-3.400 EPS. Analysts forecast that Somnigroup International Inc. will post 3.25 earnings per share for the current year.

Somnigroup International Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be issued a $0.17 dividend. The ex-dividend date is Thursday, May 21st. This represents a $0.68 dividend on an annualized basis and a yield of 1.0%. Somnigroup International's payout ratio is currently 37.99%.

Analyst Ratings Changes

SGI has been the subject of several recent analyst reports. Jefferies Financial Group raised shares of Somnigroup International from a "hold" rating to a "buy" rating and lowered their target price for the stock from $90.00 to $88.00 in a research note on Thursday, March 26th. Truist Financial lifted their price target on shares of Somnigroup International from $105.00 to $115.00 and gave the company a "buy" rating in a report on Thursday, March 5th. UBS Group decreased their price target on shares of Somnigroup International from $115.00 to $110.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Stephens reiterated an "equal weight" rating and issued a $89.00 price target on shares of Somnigroup International in a report on Tuesday, April 14th. Finally, Bank of America reduced their target price on Somnigroup International from $106.00 to $96.00 and set a "buy" rating on the stock in a report on Tuesday, April 14th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $99.60.

More Somnigroup International News

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

• Positive Sentiment: Q1 beat and top-line growth — SGI reported adjusted EPS $0.59 (vs. $0.57 consensus) and net sales up ~12% to $1.80B, reflecting a full quarter contribution from Mattress Firm. Somnigroup International Inc. Reports First Quarter 2026 Results
• Positive Sentiment: Strong cash generation — record first-quarter operating cash flow of $246M improves near-term liquidity and supports dividend/transaction flexibility. Somnigroup International Inc. Reports First Quarter 2026 Results
• Positive Sentiment: Dividend maintained — Board declared a $0.17 quarterly dividend (payable June 4, record May 21), providing income support for holders. Somnigroup Announces Second Quarter Cash Dividend
• Positive Sentiment: Insider buying — recent insider purchases were reported, which can be read as management confidence. Somnigroup (SGI) falls after Q1 report
• Neutral Sentiment: Conference call/transcript available for details — the earnings call transcript outlines management commentary on Mattress Firm, cost phasing and deal-related items for deeper context. SGI Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst views mixed — recent analyst price targets vary widely (median in the mid‑$90s), signaling disparate expectations that could amplify volatility. Analysts Have Conflicting Sentiments on These Consumer Cyclical Companies
• Negative Sentiment: Guidance reaffirmed, not raised — management reaffirmed FY26 adjusted EPS guidance of $3.00–$3.40 versus the ~$3.24 consensus, which some investors viewed as conservative given the quarter’s beat. Somnigroup International Inc. Reports First Quarter 2026 Results
• Negative Sentiment: Retail margin pressure at Mattress Firm — market commentary flagged promotional activity, mix and fixed-cost absorption weighing on Mattress Firm margins, tempering optimism about sustainable profitability. Somnigroup (SGI) falls after Q1 report
• Negative Sentiment: Deal-related costs and complexity — disclosed transaction costs tied to the proposed Leggett & Platt acquisition and added leverage/complexity have kept uncertainty elevated. Somnigroup (SGI) falls after Q1 report
• Negative Sentiment: Institutional repositioning — some large funds trimmed positions in recent quarters, which can increase selling pressure during knee‑jerk reactions to the print. Somnigroup (SGI) falls after Q1 report

About Somnigroup International

Somnigroup International Inc, together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the Tempur-Pedic, Sealy, Stearns & Foster, Sealy, and Cocoon by Sealy brand names. The company sells its products through approximately company-owned stores, online, and call centers; and third party retailers, including third party distribution, hospitality, and healthcare.

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