Top Executives at Seagate Technology PLC (STX), Infinera Corp. (INFN) and Tempur Sealy International Inc. (TPX) Are Loading Up on Shares

The World’s Largest Bedding Provider Has CFO Buy Shares

Tempur Sealy International Inc. (NYSE:TPX) also had one of its top-tier executives purchase shares earlier this week. Barry Hytinen, Chief Financial Officer and Executive Vice President, bought 16,665 shares on Tuesday at prices ranging from $59.17 to $60.50 per share, boosting his overall holding to 32,687 shares.

The shares of the world’s largest bedding provider are down by 15% since the beginning of 2016. Just recently, Tempur Sealy released its first quarter earnings report, disclosing total net sales of $721.0 million for the quarter. That represented a decrease of 2.5% compared to the top-line figure reported for the first quarter of 2015. The company’s net sales increased by an impressive 5.4% during 2015 to $3.15 billion, so the first quarter top-line decline in growth surely disappointed investors. Let’s remind you that Tempur Sealy has been weighed down by certain issues involving the Danish Tax Authority (SKAT), as the mattress manufacturer received income tax assessments from SKAT amounting to $199.6 million. The company has also been facing increased competitive pressure from online mattress sellers, who started shipping mattresses to customers’ doors in small-sized boxes. However, Tempur Sealy has announced the debut of a new offering in the e-commerce space called Cocoon by Sealy, in an attempt to combat the fast-increasing competition from the aforementioned online vendors.

Tempur Sealy’s shares are currently trading at a forward P/E multiple of 13.2, significantly below the ratio of 18.0 for the consumer discretionary sector. There were 36 hedge funds in our system with stakes in the company on December 31, which amassed nearly 26% of its outstanding common stock. Ken Fisher’s Fisher Asset Management reported owning 214,840 shares of Tempur Sealy International Inc. (NYSE:TPX) as of March 31.

Disclosure: None