Somnigroup International Sees Unusually High Options Volume (NYSE:SGI)

Key Points

• Unusually high options activity: Traders purchased 4,451 SGI call options, 92% above the typical volume of 2,315 contracts.
• Analysts remain bullish: Somnigroup International has a consensus “Buy” rating and a $95 average price target, while UBS raised its target to $102 and Zacks upgraded the stock to “Strong Buy.”
• Shares gained 6.4% to $67.62: The CEO purchased 30,000 shares, and institutional investors own 99.86% of the company; the firm also reported $0.58 quarterly EPS and maintains a $0.17 quarterly dividend.

Somnigroup International Inc. (NYSE:SGI - Get Free Report) saw some unusual options trading on Monday. Traders bought 4,451 call options on the stock. This is an increase of 92% compared to the typical volume of 2,315 call options.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on SGI shares. UBS Group increased their price objective on Somnigroup International from $94.00 to $102.00 and gave the stock a "buy" rating in a report on Thursday, September 3rd. Zacks Research upgraded shares of Somnigroup International from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, October 7th. Weiss Ratings reissued a "hold (c+)" rating on shares of Somnigroup International in a research note on Friday, August 21st. Piper Sandler reiterated an "overweight" rating and set a $100.00 price objective (up from $95.00) on shares of Somnigroup International in a research note on Thursday, September 3rd. Finally, Morgan Stanley began coverage on Somnigroup International in a research report on Monday, July 27th. They set an "overweight" rating and a $95.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, Somnigroup International has a consensus rating of "Buy" and a consensus target price of $95.00.

Insider Buying and Selling at Somnigroup International

In related news, CEO Scott Thompson bought 30,000 shares of the company'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 completion of the transaction, the chief executive officer directly owned 4,123,634 shares of the company's stock, valued at approximately $259,129,160.56. This represents a 0.73% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 3.99% of the company's stock.

Institutional Investors Weigh In On Somnigroup International

Several hedge funds and other institutional investors have recently modified their holdings of SGI. BlackRock Inc. bought a new stake in Somnigroup International in the 2nd quarter valued at $1,507,604,000. Linonia Partnership LP acquired a new position in shares of Somnigroup International during the second quarter valued at about $519,372,000. Allspring Global Investments Holdings LLC lifted its stake in shares of Somnigroup International by 62.5% in the first quarter. Allspring Global Investments Holdings LLC now owns 3,046,320 shares of the company's stock valued at $224,240,000 after buying an additional 1,171,485 shares during the period. Bank of America Corp DE bought a new stake in shares of Somnigroup International in the second quarter valued at about $204,632,000. Finally, Avala Global LP acquired a new stake in Somnigroup International during the second quarter worth about $107,831,000. Institutional investors and hedge funds own 99.86% of the company's stock.

Somnigroup International Stock Up 6.4%

NYSE:SGI traded up $4.06 during mid-day trading on Monday, reaching $67.62. The stock had a trading volume of 974,907 shares, compared to its average volume of 2,753,387. The stock has a market cap of $14.23 billion, a P/E ratio of 27.00, a PEG ratio of 1.04 and a beta of 1.30. Somnigroup International has a fifty-two week low of $60.08 and a fifty-two week high of $98.56. The business's 50 day moving average is $64.15 and its 200 day moving average is $73.88. The company has a debt-to-equity ratio of 1.33, a current ratio of 0.75 and a quick ratio of 0.37.

Somnigroup International (NYSE:SGI - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.58 earnings per share for the quarter, hitting analysts' consensus estimates of $0.58. Somnigroup International had a net margin of 7.00% and a return on equity of 19.32%. The firm had revenue of $1.82 billion during the quarter. During the same period in the prior year, the firm earned $0.53 EPS. The firm's revenue was down 3.0% on a year-over-year basis. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. As a group, sell-side analysts predict that Somnigroup International will post 3.10 earnings per share for the current year.

Somnigroup International Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th were issued a dividend of $0.17 per share. The ex-dividend date was Thursday, August 20th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. Somnigroup International's payout ratio is 27.20%.

Somnigroup International Company Profile

Somnigroup International Inc NYSE: SGI is a global bedding and sleep-products company. Its portfolio includes mattresses, pillows, adjustable bases, foundations, bed frames and other sleep-related products sold through retail stores, e-commerce channels and furniture and specialty retailers.

The company's principal brands include Tempur-Pedic, Sealy and Stearns & Foster. Somnigroup also operates Mattress Firm, a large specialty mattress retailer in the United States, providing consumers with access to a broad range of bedding products from its own brands and other manufacturers.

Somnigroup International was formerly known as Tempur Sealy International.

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