Somnigroup International (NYSE:SGI) Reaches New 52-Week Low on Disappointing Earnings

Somnigroup International Inc. (NYSE:SGI)’s share price reached a new 52-week low 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 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.06 by ($0.02). Somnigroup International had a return on equity of 19.32% and a net margin of 7.00%. The business had revenue of $2.35 billion for the quarter. During the same period in the previous year, the business earned $0.95 EPS. The business’s revenue for the quarter was up 10.8% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. UBS Group increased their price objective on shares of Somnigroup International from $94.00 to $102.00 and gave the company a “buy” rating in a report on Thursday, September 3rd. Wall Street Zen raised shares of Somnigroup International from a “sell” rating to a “hold” rating in a research note on Saturday, September 5th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Somnigroup International in a report on Friday, August 21st. Piper Sandler reissued an “overweight” rating and set a $100.00 target price (up from $95.00) on shares of Somnigroup International in a research note on Thursday, September 3rd. Finally, Stephens upgraded shares of Somnigroup International from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $66.00 to $80.00 in a report on Monday, September 14th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Somnigroup International has a consensus rating of “Moderate Buy” and a consensus target price of $95.00.

Insider Activity at Somnigroup International

In related news, CEO Scott Thompson acquired 30,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were purchased at an average cost of $62.84 per share, with a total value of $1,885,200.00. Following the completion of the transaction, the chief executive officer owned 4,123,634 shares of the company’s stock, valued at approximately $259,129,160.56. This trade 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. Corporate insiders own 3.99% of the company’s stock.

Institutional Investors Weigh In On Somnigroup International

Several institutional investors have recently made changes to their positions in SGI. Allworth Financial LP grew its position in Somnigroup International by 44.0% in the third quarter. Allworth Financial LP now owns 566 shares of the company’s stock worth $35,000 after acquiring an additional 173 shares in the last quarter. Brighton Jones LLC boosted its holdings in Somnigroup International by 3.4% in the third quarter. Brighton Jones LLC now owns 6,383 shares of the company’s stock worth $396,000 after purchasing an additional 207 shares in the last quarter. Sterling Capital Management LLC boosted its holdings in Somnigroup International by 4.0% in the third quarter. Sterling Capital Management LLC now owns 5,547 shares of the company’s stock worth $345,000 after purchasing an additional 215 shares in the last quarter. Profund Advisors LLC increased its position in Somnigroup International by 5.3% during the third quarter. Profund Advisors LLC now owns 5,027 shares of the company’s stock worth $312,000 after buying an additional 252 shares during the last quarter. Finally, Mather Group LLC. increased its position in Somnigroup International by 168.8% during the third quarter. Mather Group LLC. now owns 414 shares of the company’s stock worth $26,000 after buying an additional 260 shares during the last quarter. 99.86% of the stock is currently owned by institutional investors and hedge funds.

Somnigroup International Trading Up 1.8%

The company has a fifty day simple moving average of $64.44 and a two-hundred day simple moving average of $73.22. 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 company has a market capitalization of $13.74 billion, a P/E ratio of 25.87, a price-to-earnings-growth ratio of 1.05 and a beta of 1.30.

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.