Zacks Research Upgrades Somnigroup International (NYSE:SGI) to Strong-Buy

Somnigroup International (NYSE:SGI) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Wednesday, Zacks reports.

Several other research firms have also issued reports on SGI. Wall Street Zen upgraded shares of Somnigroup International from a “sell” rating to a “hold” rating in a report on Saturday, September 5th. Truist Financial decreased their price objective on shares of Somnigroup International from $115.00 to $100.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Morgan Stanley began coverage on shares of Somnigroup International in a research note on Monday, July 27th. They set an “overweight” rating and a $95.00 target price for the company. Zelman & Associates assumed coverage on shares of Somnigroup International in a report on Tuesday, June 23rd. They issued an “outperform” rating and a $99.00 target price on the stock. Finally, Stephens raised shares of Somnigroup International from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $66.00 to $80.00 in a research report on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Buy” and a consensus price target of $95.00.

Somnigroup International Stock Up 1.1%

Shares of SGI opened at $62.46 on Wednesday. The company has a market capitalization of $13.14 billion, a PE ratio of 24.98, a PEG ratio of 1.01 and a beta of 1.24. Somnigroup International has a 12 month low of $60.08 and a 12 month high of $98.56. The stock’s 50-day moving average price is $65.02 and its two-hundred day moving average price is $70.31. The company has a current ratio of 0.75, a quick ratio of 0.37 and a debt-to-equity ratio of 1.33.

Somnigroup International (NYSE:SGI) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.58 earnings per share for the quarter, meeting the consensus estimate of $0.58. Somnigroup International had a return on equity of 19.32% and a net margin of 7.00%.The company had revenue of $1.82 billion during the quarter. During the same period in the previous year, the company posted $0.53 EPS. The company’s quarterly 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. On average, analysts anticipate that Somnigroup International will post 3.11 EPS for the current year.

Insider Buying and Selling

In other news, CEO Scott Thompson bought 30,000 shares of the stock in a transaction dated Thursday, August 27th. The stock was bought at an average price 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 in the company, valued at approximately $259,129,160.56. This trade represents a 0.73% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 3.99% of the company’s stock.

Hedge Funds Weigh In On Somnigroup International

Hedge funds and other institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC grew its position in Somnigroup International by 27.1% during the third quarter. GAMMA Investing LLC now owns 10,176 shares of the company’s stock valued at $632,000 after buying an additional 2,170 shares during the period. Farther Finance Advisors LLC raised its position in Somnigroup International by 3.7% in the third quarter. Farther Finance Advisors LLC now owns 8,041 shares of the company’s stock worth $499,000 after acquiring an additional 284 shares during the period. Valeo Financial Advisors LLC purchased a new position in Somnigroup International in the third quarter valued at about $299,000. Tactive Advisors LLC bought a new position in shares of Somnigroup International during the 3rd quarter valued at approximately $418,000. Finally, Investors Research Corp bought a new position in shares of Somnigroup International during the 3rd quarter valued at approximately $232,000. 99.86% of the stock is owned by hedge funds and other institutional investors.

About Somnigroup International

Somnigroup International Inc is a global bedding company that designs, manufactures, distributes and sells mattresses, foundations, pillows, adjustable bases and other sleep-related products. The company serves consumers through wholesale distribution, company-operated and third-party retail locations, e-commerce platforms and hospitality channels.

Its portfolio includes well-known brands such as Tempur-Pedic, Sealy and Stearns & Foster, as well as products sold through the Mattress Firm retail banner.