Somnigroup International (NYSE:SGI) Hits New 12-Month Low After Earnings Miss

Key Points

• Somnigroup shares hit a new 52-week low after quarterly EPS of $1.04 missed analysts’ $1.06 estimate by $0.02.
• Quarterly revenue rose 10.8% year over year to $2.35 billion, while EPS increased from $0.95 in the same period last year.
• Analysts’ consensus rating remains “Moderate Buy,” with a $95 average price target; CEO Scott Thompson also purchased 30,000 shares at an average $62.84.

Shares of Somnigroup International Inc. (NYSE:SGI - Get Free Report) reached a new 52-week low during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $59.94 and last traded at $62.8660, with a volume of 174,356 shares traded. The stock had previously closed at $64.17.

The company reported $1.04 EPS for the quarter, missing the consensus estimate of $1.06 by ($0.02). Somnigroup International had a net margin of 7.00% and a return on equity of 19.32%. The business had revenue of $2.35 billion during the quarter. During the same period last year, the business earned $0.95 EPS. Somnigroup International's revenue for the quarter was up 10.8% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

SGI has been the subject of several research analyst reports. Wall Street Zen raised shares of Somnigroup International from a "sell" rating to a "hold" rating in a research report on Saturday, September 5th. Zacks Research lowered shares of Somnigroup International from a "strong-buy" rating to a "hold" rating in a report on Thursday. Truist Financial lowered their price target on Somnigroup International from $115.00 to $100.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Somnigroup International in a report on Friday, August 21st. Finally, Stephens raised shares of Somnigroup International from an "equal weight" rating to an "overweight" rating and increased their price objective for the stock from $66.00 to $80.00 in a research report on Monday, September 14th. Eight analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Somnigroup International has an average rating of "Moderate Buy" and a consensus target price of $95.00.

Insider Activity at Somnigroup International

In related news, CEO Scott Thompson bought 30,000 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The shares were acquired at an average cost of $62.84 per share, for a total transaction of $1,885,200.00. Following the acquisition, the chief executive officer owned 4,123,634 shares in the company, valued at $259,129,160.56. This represents a 0.73% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 3.99% of the company's stock.

Institutional Trading of Somnigroup International

Several large investors have recently modified their holdings of SGI. Mather Group LLC. boosted its stake in Somnigroup International by 168.8% during the 3rd quarter. Mather Group LLC. now owns 414 shares of the company's stock valued at $26,000 after purchasing an additional 260 shares during the period. Salomon & Ludwin LLC grew its position in Somnigroup International by 772.0% in the 3rd quarter. Salomon & Ludwin LLC now owns 436 shares of the company's stock worth $27,000 after purchasing an additional 386 shares during the last quarter. SBI Securities Co. Ltd. increased its stake in shares of Somnigroup International by 11,900.0% in the third quarter. SBI Securities Co. Ltd. now owns 480 shares of the company's stock valued at $30,000 after purchasing an additional 476 shares during the period. Signature Equity Partners LLC increased its stake in shares of Somnigroup International by 173.1% in the third quarter. Signature Equity Partners LLC now owns 478 shares of the company's stock valued at $30,000 after purchasing an additional 303 shares during the period. Finally, Allworth Financial LP bought a new stake in shares of Somnigroup International during the second quarter valued at approximately $31,000. 99.86% of the stock is currently owned by institutional investors and hedge funds.

Somnigroup International Stock Performance

The stock has a fifty day moving average price of $64.44 and a two-hundred day moving average price of $73.22. The company has a market cap of $13.74 billion, a P/E ratio of 25.87, a PEG ratio of 1.05 and a beta of 1.30. 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 Company Profile

Somnigroup International, Inc is a bedding company that designs, manufactures, distributes and sells mattresses and related sleep products. Its offerings include adjustable bases, pillows and other bedding accessories, marketed under brands such as Tempur-Pedic, Sealy and Stearns & Foster.

The company also operates Mattress Firm, a mattress retailer with stores across the United States. Through its brands, retail business and other sales channels, Somnigroup serves customers in the U.S.

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