Somnigroup International Inc. $SGI Stock Holdings Lifted by Salvus Wealth Management LLC

Key Points

• Salvus Wealth Management increased its Somnigroup International stake by 31.5% in the third quarter to 73,425 shares valued at approximately $4.56 million. Institutional investors collectively own 99.86% of the company.
• Somnigroup shares recently traded around $63, near the lower end of their 12-month range of $60.08 to $98.56. The company reported quarterly EPS of $0.58, matching estimates, while revenue fell 3% year over year to $1.82 billion.
• Analysts maintain a generally positive outlook, with the stock carrying an average “Buy” rating and a $95 consensus price target. The company also pays a quarterly dividend of $0.17, and CEO Scott Thompson recently bought 30,000 shares.

Salvus Wealth Management LLC boosted its holdings in Somnigroup International Inc. (NYSE:SGI - Free Report) by 31.5% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 73,425 shares of the company's stock after acquiring an additional 17,574 shares during the period. Somnigroup International accounts for about 2.4% of Salvus Wealth Management LLC's investment portfolio, making the stock its 9th largest position. Salvus Wealth Management LLC's holdings in Somnigroup International were worth $4,560,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Allworth Financial LP purchased a new position in Somnigroup International during the second quarter worth $31,000. Danske Bank A S acquired a new stake in shares of Somnigroup International during the second quarter valued at $39,000. Transamerica Financial Advisors LLC acquired a new stake in shares of Somnigroup International during the second quarter valued at $45,000. SHP Wealth Management acquired a new stake in shares of Somnigroup International during the fourth quarter valued at $52,000. Finally, Keating Financial Advisory Services Inc. purchased a new stake in Somnigroup International during the 2nd quarter worth about $55,000. 99.86% of the stock is currently owned by hedge funds and other institutional investors.

Somnigroup International Stock Up 1.0%

Shares of SGI traded up $0.61 during mid-day trading on Tuesday, reaching $63.01. 1,734,400 shares of the stock traded hands, compared to its average volume of 2,773,273. The stock has a fifty day simple moving average of $64.74 and a 200 day simple moving average of $70.04. Somnigroup International Inc. has a 12-month low of $60.08 and a 12-month high of $98.56. The company has a quick ratio of 0.37, a current ratio of 0.75 and a debt-to-equity ratio of 1.33. The firm has a market cap of $13.26 billion, a price-to-earnings ratio of 25.20, a P/E/G ratio of 1.02 and a beta of 1.24.

Somnigroup International (NYSE:SGI - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.58 earnings per share for the quarter, meeting the consensus estimate of $0.58. Somnigroup International had a net margin of 7.00% and a return on equity of 19.32%. The business had revenue of $1.82 billion during the quarter. During the same quarter last year, the company posted $0.53 earnings per share. Somnigroup International's revenue for the quarter was down 3.0% compared to the same quarter last year. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. Sell-side analysts expect that Somnigroup International Inc. will post 3.11 EPS for the current fiscal year.

Somnigroup International Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th were given a $0.17 dividend. The ex-dividend date was Thursday, August 20th. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. Somnigroup International's dividend payout ratio (DPR) is presently 27.20%.

Analysts Set New Price Targets

Several analysts have commented on the stock. Piper Sandler reaffirmed an "overweight" rating and issued a $100.00 target price (up from $95.00) on shares of Somnigroup International in a research note on Thursday, September 3rd. Stephens upgraded shares of Somnigroup International from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $66.00 to $80.00 in a research note on Monday, September 14th. Weiss Ratings reissued a "hold (c+)" rating on shares of Somnigroup International in a research report on Friday, August 21st. Zacks Research raised shares of Somnigroup International from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, October 7th. Finally, Truist Financial reduced their target price on shares of Somnigroup International from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $95.00.

Insiders Place Their Bets

In related news, CEO Scott Thompson bought 30,000 shares of the firm's stock in a transaction on Thursday, August 27th. The stock was bought at an average cost of $62.84 per share, for a total transaction of $1,885,200.00. Following the completion of the purchase, the chief executive officer directly owned 4,123,634 shares in the company, valued at approximately $259,129,160.56. The trade was a 0.73% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 3.99% of the stock is currently owned by insiders.

Somnigroup International Profile

Somnigroup International Inc is a global bedding company that designs, manufactures, distributes and sells mattresses, foundations, pillows, adjustable bases and other sleep-related products. The company serves consumers through wholesale distribution, company-operated and third-party retail locations, e-commerce platforms and hospitality channels.

Its portfolio includes well-known brands such as Tempur-Pedic, Sealy and Stearns & Foster, as well as products sold through the Mattress Firm retail banner.

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