Somnigroup International stock hits all-time high at 69.89 USD

Published 01/07/2025, 16:36
Somnigroup International stock hits all-time high at 69.89 USD

Somnigroup International Inc. (SGI) stock reached an all-time high of 69.89 USD, marking a significant milestone for the $14.55 billion market cap company. According to InvestingPro analysis, the stock appears overvalued at current levels, trading at a P/E ratio of 45x. This achievement comes as the stock has experienced a robust 1-year change of 43.96%, reflecting strong investor confidence and positive market sentiment. The surge in SGI’s stock price underscores the company’s growth trajectory, supported by 8.96% revenue growth in the last twelve months. Analysts maintain a bullish outlook with price targets ranging from $60 to $80, though InvestingPro data reveals 8 analysts have recently revised earnings expectations downward. The company maintains a GOOD financial health score, with particularly strong momentum metrics. Investors and analysts will be watching closely to see if this upward trend continues, as SGI continues to make strategic moves in its industry.

In other recent news, Somnigroup International Inc. reported its first-quarter 2025 earnings, revealing an adjusted EPS of $0.49, slightly above the forecast of $0.48, but revenue came in at $1.6 billion, falling short of the anticipated $1.63 billion. The company also announced the repricing of its $1.6 billion Term Loan B, reducing the applicable margin by 25 basis points, and prepaid $100 million of the outstanding term loan principal balance. Somnigroup launched a secondary stock offering of 15,376,743 shares, with Goldman Sachs & Co. LLC as the sole underwriter, although the company will not receive any proceeds from the sale. Additionally, the Board of Directors extended CEO Scott Thompson’s contract through 2029, awarding him stock options and a $10 million bonus for his role in the Mattress Firm acquisition. Despite these developments, Somnigroup revised its 2025 EPS guidance to between $2.30 and $2.65, down from previous expectations, due to ongoing market challenges. The company continues to focus on synergy initiatives following the Mattress Firm acquisition, expecting $15 million in cost synergies for 2025. The company anticipates annual sales between $7.3 billion and $7.5 billion, with international operations showing mid-single-digit growth.

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