Sleep Number Sees Unusually Large Options Volume (NASDAQ:SNBR)

Sleep Number Corporation (NASDAQ:SNBR) was the recipient of some unusual options trading on Friday. Investors bought 9,333 call options on the company. This is an increase of 459% compared to the average volume of 1,671 call options.

Insider Activity at Sleep Number

In related news, major shareholder Stadium Capital Management Llc sold 390,676 shares of Sleep Number stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $1.78, for a total value of $695,403.28. Following the transaction, the insider directly owned 341,515 shares of the company’s stock, valued at $607,896.70. The trade was a 53.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 3.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sleep Number

Hedge funds have recently added to or reduced their stakes in the business. Marks Group Wealth Management Inc increased its holdings in Sleep Number by 50.0% in the first quarter. Marks Group Wealth Management Inc now owns 15,000 shares of the company’s stock worth $27,000 after purchasing an additional 5,000 shares in the last quarter. Quantinno Capital Management LP increased its holdings in Sleep Number by 40.5% in the first quarter. Quantinno Capital Management LP now owns 36,909 shares of the company’s stock worth $66,000 after purchasing an additional 10,636 shares in the last quarter. Vanguard Personalized Indexing Management LLC bought a new stake in Sleep Number in the third quarter worth approximately $70,000. Sei Investments Co. bought a new stake in Sleep Number in the second quarter worth approximately $73,000. Finally, Sherbrooke Park Advisers LLC bought a new stake in Sleep Number in the third quarter worth approximately $87,000. 85.67% of the stock is currently owned by institutional investors.

Sleep Number Price Performance

Shares of Sleep Number stock traded up $0.26 during midday trading on Friday, reaching $0.61. The company had a trading volume of 217,687,035 shares, compared to its average volume of 3,983,443. The firm has a market cap of $13.97 million, a PE ratio of -0.08 and a beta of 2.48. The stock has a fifty day moving average price of $1.94 and a 200 day moving average price of $5.64. Sleep Number has a fifty-two week low of $0.30 and a fifty-two week high of $13.94.

Sleep Number (NASDAQ:SNBR) last issued its earnings results on Tuesday, May 12th. The company reported ($2.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.39) by ($1.80). The business had revenue of $318.99 million during the quarter, compared to analyst estimates of $320.72 million. As a group, sell-side analysts forecast that Sleep Number will post -0.82 EPS for the current year.

Wall Street Analyst Weigh In

A number of research firms recently commented on SNBR. Wall Street Zen lowered Sleep Number from a “sell” rating to a “strong sell” rating in a research note on Sunday, April 19th. UBS Group cut their price objective on Sleep Number from $4.00 to $2.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 13th. Zacks Research lowered Sleep Number from a “hold” rating to a “strong sell” rating in a research note on Wednesday, May 13th. Finally, Piper Sandler cut their price objective on Sleep Number from $12.00 to $5.00 and set a “neutral” rating on the stock in a research note on Friday, March 13th. Two equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus target price of $3.50.

Sleep Number Company Profile

Sleep Number Corporation (NASDAQ: SNBR) is a Minneapolis‐based company specializing in the design, manufacture and retail of adjustable air mattresses and bedding products. The company’s flagship Sleep Number® bed features dual air chambers that allow each side of the mattress to be tailored to an individual’s preferred firmness, supported by integrated SleepIQ® technology. This proprietary monitoring system tracks biometric data such as heart rate, breathing and motion, delivering personalized sleep insights through a connected app.

Founded in 1987 as Select Comfort, the business pioneered adjustable air mattress technology and has since grown into a direct-to-consumer retailer.