Somnigroup International (NYSE:SGI) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Somnigroup International from “hold” to “strong sell,” although the broader analyst consensus remains “Moderate Buy” with a $94.50 price target.
• SGI opened at $65.11, near its 52-week low of $60.39 and well below its 52-week high of $98.56. Shares have declined despite the company meeting quarterly EPS expectations at $0.58, while revenue fell 3% year over year to $1.82 billion.
• Institutional investors own 99.86% of the stock, with several firms recently increasing their positions. The company guided to fiscal 2026 EPS of $2.85–$3.15, compared with analysts’ current estimate of $3.02.

Somnigroup International (NYSE:SGI - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

SGI has been the topic of a number of other research reports. Stephens reaffirmed an "equal weight" rating and issued a $89.00 target price on shares of Somnigroup International in a report on Tuesday, April 14th. Morgan Stanley started coverage on shares of Somnigroup International in a research report on Monday, July 27th. They set an "overweight" rating and a $95.00 target price on the stock. Piper Sandler reissued an "overweight" rating and issued a $95.00 price target (down from $102.00) on shares of Somnigroup International in a report on Friday, August 7th. Bank of America dropped their price objective on shares of Somnigroup International from $106.00 to $96.00 and set a "buy" rating on the stock in a report on Tuesday, April 14th. Finally, Weiss Ratings cut shares of Somnigroup International from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Seven research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $94.50.

Somnigroup International Stock Up 0.4%

Somnigroup International stock opened at $65.11 on Monday. The firm has a market cap of $13.70 billion, a price-to-earnings ratio of 26.04, a P/E/G ratio of 1.46 and a beta of 1.20. 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 has a fifty-two week low of $60.39 and a fifty-two week high of $98.56. The firm has a fifty day moving average price of $72.12 and a two-hundred day moving average price of $77.05.

Somnigroup International (NYSE:SGI - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.58 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.58. The company had revenue of $1.82 billion for the quarter. Somnigroup International had a return on equity of 19.32% and a net margin of 7.00%.The company's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.53 earnings per share. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. As a group, analysts forecast that Somnigroup International will post 3.02 earnings per share for the current year.

Institutional Investors Weigh In On Somnigroup International

Several large investors have recently modified their holdings of SGI. HB Wealth Management LLC increased its position in shares of Somnigroup International by 1.0% during the 4th quarter. HB Wealth Management LLC now owns 11,885 shares of the company's stock worth $1,061,000 after purchasing an additional 115 shares in the last quarter. Sanctuary Advisors LLC boosted its position in Somnigroup International by 5.1% in the fourth quarter. Sanctuary Advisors LLC now owns 2,912 shares of the company's stock valued at $260,000 after buying an additional 141 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in Somnigroup International by 1.3% in the fourth quarter. PNC Financial Services Group Inc. now owns 10,926 shares of the company's stock valued at $975,000 after buying an additional 142 shares in the last quarter. Fifth Third Bancorp grew its stake in Somnigroup International by 8.1% during the fourth quarter. Fifth Third Bancorp now owns 1,974 shares of the company's stock worth $176,000 after buying an additional 148 shares during the last quarter. Finally, Platform Technology Partners increased its holdings in shares of Somnigroup International by 5.9% during the first quarter. Platform Technology Partners now owns 2,770 shares of the company's stock worth $205,000 after buying an additional 155 shares in the last quarter. 99.86% of the stock is currently owned by institutional investors.

About Somnigroup International

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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