Business

Stock in News Spotlight: Tempur Sealy International (NYSE:TPX)

Tempur Sealy International (NYSE:TPX) stock experienced trading -7.44% off 52-week high price. On the other end, the stock has been noted 322.36% away from low price over the last 52-weeks. The stock disclosed a move of 14.37% away from 50 day moving average and 27.86% away from 200 day moving average. Moving closer, we can see that shares have been trading 8.07% off 20-day moving average. It has market cap of $4.76B.

On Sept. 14, 2020, Tempur Sealy International (NYSE:TPX) reported that quarter-to-date order trends have improved from previous expectations and the Company now estimates total third quarter net sales to grow more than 30% compared to prior year. The change in expectation was primarily driven by improving order trends on U.S. Tempur-Pedic products. The Company continues to experience capacity constraints for U.S. Sealy products, including supply chain limitations outside the Company’s control. The Company is working closely with suppliers to find solutions for component shortfalls to support the elevated U.S. Sealy demand.

Tempur Sealy Chairman and CEO Scott Thompson stated, Over the last five years, we have made tremendous progress in strengthening the foundation of our Company. The strong foundation we have in place with our brands, products, operations and people have positioned us well to capitalize on industry growth for years to come.

Thompson continued, We continue to see strong growth that is broad-based across geographies and channels. Tempur-Pedic branded products are now growing materially higher than the growth on Sealy products in the U.S. which has raised our profit expectations for the quarter. Free cash flow has also been strong and our confidence in positive industry trends has increased. Accordingly, in September, we are using operating cash flow to repay the $200 million 364-day incremental Term Loan we closed in the second quarter. This repayment will remove certain restrictions on share repurchases and dividends and result in an annual interest saving of approximately $5 million. Additionally, with this improved outlook, we expect to reach the higher end of the payout under our long-term aspirational plan at the end of the third quarter.

The USA based company Tempur Sealy International moved with change of 8.39% to $92.92 with the total traded volume of 1528565 shares in recent session versus to an average volume of 616.14K. The stock was observed in the 5 days activity at 12.37%. The one month performance of stock was 6.41%. TPX’s shares are at 39.02% for the quarter and driving a 18.38% return over the course of the past year and is now at 6.73% since this point in 2018.  Right now the stock beta is 2.08. The average volatility for the week and month was at 3.88% and 3.39% respectively. There are 51.60M shares outstanding and 50.86M shares are floated in market.

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