Wall Street Zen Downgrades Somnigroup International (NYSE:SGI) to Sell

Key Points

• Wall Street Zen downgraded Somnigroup International to “sell” from “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $94.50.
• SGI shares opened at $66.08, well below their 50-day and 200-day moving averages, and have traded between $60.39 and $98.56 over the past year.
• The company matched quarterly earnings expectations at $0.58 per share, but revenue fell 3% year over year to $1.82 billion; management’s fiscal 2026 EPS guidance is $2.85–$3.15.

Somnigroup International (NYSE:SGI - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

Several other research firms have also recently commented on SGI. Zelman & Associates assumed coverage on Somnigroup International in a research note on Tuesday, June 23rd. They issued an "outperform" rating and a $99.00 target price for the company. Weiss Ratings cut Somnigroup International from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, May 26th. UBS Group lowered their price objective on Somnigroup International from $105.00 to $94.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Zacks Research cut Somnigroup International from a "hold" rating to a "strong sell" rating in a report on Monday, August 10th. Finally, Piper Sandler restated an "overweight" rating and set a $95.00 target price (down from $102.00) on shares of Somnigroup International in a research 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, the stock has a consensus rating of "Moderate Buy" and an average target price of $94.50.

Somnigroup International Price Performance

SGI opened at $66.08 on Friday. The company has a debt-to-equity ratio of 1.33, a current ratio of 0.75 and a quick ratio of 0.37. The stock has a market capitalization of $13.90 billion, a P/E ratio of 26.43, a price-to-earnings-growth ratio of 1.49 and a beta of 1.20. The company's 50 day simple moving average is $71.95 and its 200-day simple moving average is $76.58. Somnigroup International has a one year low of $60.39 and a one year high of $98.56.

Somnigroup International (NYSE:SGI - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.58 earnings per share for the quarter, hitting the consensus estimate 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 quarter last year, the firm earned $0.53 EPS. The business's revenue for the quarter was down 3.0% on a year-over-year basis. Somnigroup International has set its FY 2026 guidance at 2.850-3.150 EPS. Sell-side analysts anticipate that Somnigroup International will post 3.02 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Somnigroup International

Hedge funds have recently bought and sold shares of the company. Core Wealth Advisors LLC bought a new position in shares of Somnigroup International during the fourth quarter worth $30,000. Allworth Financial LP acquired a new stake in Somnigroup International during the 2nd quarter worth $31,000. Elyxium Wealth LLC bought a new position in Somnigroup International during the fourth quarter worth about $35,000. Danske Bank A S bought a new position in Somnigroup International during the second quarter worth about $39,000. Finally, First Horizon Corp lifted its holdings in Somnigroup International by 93.3% during the fourth quarter. First Horizon Corp now owns 464 shares of the company's stock worth $41,000 after acquiring an additional 224 shares in the last quarter. 99.86% of the stock is currently owned by institutional investors and hedge funds.

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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