Makena Capital Management LLC Reduces Stock Position in Somnigroup International Inc. $SGI

Key Points

• Makena Capital Management cut its Somnigroup International stake by 36.6% in the fourth quarter, selling 126,420 shares and leaving it with 218,934 shares valued at about $19.5 million.
• Somnigroup reported better-than-expected first-quarter results, with EPS of $0.59 versus $0.57 expected and revenue up 12.3% year over year to $1.80 billion.
• The company reaffirmed FY 2026 EPS guidance of $3.00 to $3.40 and announced a quarterly dividend of $0.17 per share, for an annualized yield of about 1.0%.

Makena Capital Management LLC reduced its holdings in Somnigroup International Inc. (NYSE:SGI - Free Report) by 36.6% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 218,934 shares of the company's stock after selling 126,420 shares during the period. Somnigroup International makes up 2.3% of Makena Capital Management LLC's portfolio, making the stock its 15th largest holding. Makena Capital Management LLC owned approximately 0.10% of Somnigroup International worth $19,546,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the company. Brown Miller Wealth Management LLC grew its holdings in Somnigroup International by 2.4% during the 4th quarter. Brown Miller Wealth Management LLC now owns 4,820 shares of the company's stock valued at $430,000 after purchasing an additional 113 shares during the last quarter. HB Wealth Management LLC grew its holdings in Somnigroup International by 1.0% during the 4th quarter. HB Wealth Management LLC now owns 11,885 shares of the company's stock valued at $1,061,000 after purchasing an additional 115 shares during the last quarter. Sanctuary Advisors LLC grew its holdings in Somnigroup International by 5.1% during the 4th quarter. Sanctuary Advisors LLC now owns 2,912 shares of the company's stock valued at $260,000 after purchasing an additional 141 shares during the last quarter. Fifth Third Bancorp grew its holdings in Somnigroup International by 8.1% during the 4th quarter. Fifth Third Bancorp now owns 1,974 shares of the company's stock valued at $176,000 after purchasing an additional 148 shares during the last quarter. Finally, Assetmark Inc. grew its holdings in Somnigroup International by 56.6% during the 4th quarter. Assetmark Inc. now owns 512 shares of the company's stock valued at $46,000 after purchasing an additional 185 shares during the last quarter. 99.86% of the stock is currently owned by institutional investors.

Somnigroup International Stock Performance

NYSE SGI opened at $69.44 on Friday. The company has a current ratio of 0.78, a quick ratio of 0.42 and a debt-to-equity ratio of 1.41. The company's 50 day simple moving average is $78.29. Somnigroup International Inc. has a 52-week low of $59.01 and a 52-week high of $98.56. The company has a market capitalization of $14.61 billion, a P/E ratio of 28.34, a PEG ratio of 1.10 and a beta of 1.25.

Somnigroup International (NYSE:SGI - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.57 by $0.02. The firm had revenue of $1.80 billion during the quarter. Somnigroup International had a net margin of 6.80% and a return on equity of 19.62%. The company's revenue was up 12.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.49 EPS. Somnigroup International has set its FY 2026 guidance at 3.000-3.400 EPS. On average, analysts forecast that Somnigroup International Inc. will post 3.25 earnings per share for the current fiscal year.

Somnigroup International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be paid a dividend of $0.17 per share. 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 dividend payout ratio is presently 27.76%.

Analyst Upgrades and Downgrades

Several research firms have issued reports on SGI. Bank of America lowered their price objective on shares of Somnigroup International from $106.00 to $96.00 and set a "buy" rating for the company in a research report on Tuesday, April 14th. UBS Group lowered their price objective on shares of Somnigroup International from $110.00 to $105.00 and set a "buy" rating for the company in a research report on Friday. Jefferies Financial Group raised shares of Somnigroup International from a "hold" rating to a "buy" rating and lowered their price objective for the company from $90.00 to $88.00 in a research report on Thursday, March 26th. Stephens reissued an "equal weight" rating and issued a $89.00 price objective on shares of Somnigroup International in a research report on Tuesday, April 14th. Finally, Truist Financial boosted their price objective on shares of Somnigroup International from $105.00 to $115.00 and gave the company a "buy" rating in a research report on Thursday, March 5th. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Somnigroup International presently has a consensus rating of "Moderate Buy" and an average target price of $98.60.

Key Headlines Impacting Somnigroup International

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

• Positive Sentiment: Somnigroup posted first-quarter adjusted EPS of $0.59, topping Wall Street estimates, while revenue rose 12.3% year over year to $1.80 billion and operating cash flow hit a record $246 million. Somnigroup International Inc. Reports First Quarter 2026 Results
• Positive Sentiment: The board declared a quarterly cash dividend of $0.17 per share, underscoring continued shareholder returns. Somnigroup Announces Second Quarter Cash Dividend
• Neutral Sentiment: Management reaffirmed full-year 2026 EPS guidance of $3.00 to $3.40, which matched expectations closely but did not provide an upside surprise. Somnigroup International Inc. Reports First Quarter 2026 Results
• Negative Sentiment: Investors appear concerned about softness in bedding demand and profitability pressure at Mattress Firm, with commentary pointing to promotional activity and margin compression. SGI Q1 deep dive: Margin expansion amid challenging bedding market and demand pressures
• Negative Sentiment: Some market coverage framed the stock’s decline as a reaction to the earnings report, with scrutiny on guidance, retail margins, and deal-related uncertainty tied to the proposed Leggett & Platt acquisition. Somnigroup (SGI) falls after Q1 report, as guidance and retail margins draw scrutiny

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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