Somnigroup International (NYSE:SGI) Trading 6.3% Higher Following Insider Buying Activity

Key Points

• Somnigroup International shares rose 6.3% to $66.40 after CEO Scott L. Thompson purchased 30,000 shares for approximately $1.89 million, increasing his direct ownership to more than 4.1 million shares.
• Analyst sentiment is mixed, but the stock carries a consensus “Moderate Buy” rating from 10 analysts, with an average price target of $94.50.
• The company met quarterly EPS expectations at $0.58 while revenue fell 3% year over year to $1.82 billion; it also declared a quarterly dividend of $0.17 per share, yielding about 1.0% annually.

Somnigroup International Inc. (NYSE:SGI - Get Free Report) traded up 6.3% during mid-day trading on Friday after an insider bought additional shares in the company. The company traded as high as $66.41 and last traded at $66.40. Approximately 1,012,752 shares were traded during trading, a decline of 62% from the average daily volume of 2,659,071 shares. The stock had previously closed at $62.48.

Specifically, CEO Scott L. Thompson acquired 30,000 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was acquired at an average cost of $62.84 per share, for a total transaction of $1,885,200.00. Following the completion of the acquisition, the chief executive officer directly owned 4,123,634 shares of the company's stock, valued at approximately $259,129,160.56. The trade was a 0.73% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website.

Wall Street Analyst Weigh In

SGI has been the subject of a number of research analyst reports. Zacks Research downgraded Somnigroup International from a "hold" rating to a "strong sell" rating in a research report on Monday, August 10th. Morgan Stanley started 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. Weiss Ratings restated a "hold (c+)" rating on shares of Somnigroup International in a report on Friday, August 21st. Wall Street Zen cut Somnigroup International from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. Finally, Truist Financial lowered their target price on Somnigroup International from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $94.50.

Somnigroup International Price Performance

The company has a market cap of $13.97 billion, a P/E ratio of 26.56, a PEG ratio of 1.41 and a beta of 1.20. The company has a fifty day simple moving average of $70.49 and a 200-day simple moving average of $74.70. 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 announced its quarterly earnings data on Thursday, August 6th. The company reported $0.58 EPS for the quarter, meeting analysts' consensus estimates of $0.58. The company had revenue of $1.82 billion during the quarter. Somnigroup International had a return on equity of 19.32% and a net margin of 7.00%.Somnigroup International's revenue was down 3.0% on a year-over-year basis. During the same quarter last year, the company posted $0.53 EPS. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. On average, sell-side analysts predict that Somnigroup International Inc. will post 3.02 earnings per share for the current year.

Somnigroup International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 20th will be given a $0.17 dividend. The ex-dividend date is Thursday, August 20th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.0%. Somnigroup International's dividend payout ratio (DPR) is 27.20%.

Hedge Funds Weigh In On Somnigroup International

A number of hedge funds and other institutional investors have recently modified their holdings of SGI. Core Wealth Advisors LLC acquired a new stake in Somnigroup International during the 4th quarter worth about $30,000. Allworth Financial LP purchased a new position in shares of Somnigroup International in the second quarter worth approximately $31,000. Elyxium Wealth LLC purchased a new position in shares of Somnigroup International in the fourth quarter worth approximately $35,000. Danske Bank A S acquired a new stake in shares of Somnigroup International during the second quarter valued at approximately $39,000. Finally, Hilton Head Capital Partners LLC acquired a new stake in shares of Somnigroup International during the fourth quarter valued at approximately $42,000. Institutional investors and hedge funds own 99.86% of the company's stock.

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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