Principal Financial Group Inc. Sells 34,018 Shares of Somnigroup International Inc. $SGI

Key Points

• Principal Financial Group trimmed its stake in Somnigroup International by 6.3% in the fourth quarter, selling 34,018 shares and ending with 507,994 shares valued at about $45.4 million.
• Somnigroup reported strong first-quarter results, with adjusted EPS of $0.59 beating estimates and revenue rising 12.3% year over year to $1.80 billion. Operating cash flow also reached a record $246 million.
• The company reaffirmed full-year 2026 EPS guidance of $3.00 to $3.40 and declared a quarterly dividend of $0.17 per share, even as some investors remain concerned about bedding demand and margin pressure.

Principal Financial Group Inc. decreased its position in Somnigroup International Inc. (NYSE:SGI - Free Report) by 6.3% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 507,994 shares of the company's stock after selling 34,018 shares during the quarter. Principal Financial Group Inc. owned approximately 0.24% of Somnigroup International worth $45,354,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the company. JPMorgan Chase & Co. bought a new position in Somnigroup International during the third quarter valued at about $269,540,000. Allspring Global Investments Holdings LLC grew its position in Somnigroup International by 6.9% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 1,874,835 shares of the company's stock valued at $166,373,000 after buying an additional 121,244 shares during the period. Tectonic Advisors LLC grew its position in Somnigroup International by 0.4% during the fourth quarter. Tectonic Advisors LLC now owns 123,107 shares of the company's stock valued at $10,991,000 after buying an additional 548 shares during the period. Donaldson Capital Management LLC grew its position in Somnigroup International by 16.8% during the fourth quarter. Donaldson Capital Management LLC now owns 93,392 shares of the company's stock valued at $8,338,000 after buying an additional 13,421 shares during the period. Finally, SG Americas Securities LLC grew its position in Somnigroup International by 134.5% during the fourth quarter. SG Americas Securities LLC now owns 84,144 shares of the company's stock valued at $7,512,000 after buying an additional 48,257 shares during the period. Institutional investors own 99.86% of the company's stock.

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

Analyst Ratings Changes

Several research firms recently weighed in on SGI. Bank of America reduced their price target 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. Truist Financial increased their price target 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. UBS Group reduced their price target 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. Stephens restated an "equal weight" rating and set a $89.00 price target on shares of Somnigroup International in a research report on Tuesday, April 14th. Finally, Jefferies Financial Group upgraded shares of Somnigroup International from a "hold" rating to a "buy" rating and reduced their price target for the company from $90.00 to $88.00 in a research report on Thursday, March 26th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, Somnigroup International presently has an average rating of "Moderate Buy" and a consensus target price of $98.60.

Somnigroup International Stock Down 1.7%

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

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 (EPS) for the quarter, topping analysts' consensus estimates of $0.57 by $0.02. Somnigroup International had a net margin of 6.80% and a return on equity of 19.62%. The firm had revenue of $1.80 billion for the quarter. During the same period in the previous year, the company posted $0.49 earnings per share. The company's quarterly revenue was up 12.3% compared to the same quarter last year. Somnigroup International has set its FY 2026 guidance at 3.000-3.400 EPS. Analysts anticipate that Somnigroup International Inc. will post 3.25 earnings per share for the current fiscal year.

Somnigroup International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Stockholders of record on Thursday, May 21st will be issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, May 21st. Somnigroup International's dividend payout ratio is presently 27.76%.

Somnigroup International Company Profile

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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