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

Sleep Number Corporation (NASDAQ:SNBR) was the recipient of some unusual options trading activity on Wednesday. Investors bought 3,223 put options on the stock. This is an increase of 116% compared to the average daily volume of 1,492 put options.

Sleep Number Stock Down 11.5%

Shares of NASDAQ SNBR traded down $0.15 during trading hours on Wednesday, reaching $1.12. 1,598,865 shares of the stock traded hands, compared to its average volume of 1,902,473. The company’s 50-day simple moving average is $2.05 and its two-hundred day simple moving average is $5.70. The company has a market capitalization of $25.70 million, a P/E ratio of -0.15 and a beta of 2.48. Sleep Number has a 52-week low of $1.06 and a 52-week high of $13.94.

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

Insider Activity at Sleep Number

In other news, major shareholder Stadium Capital Management Llc sold 390,676 shares of the company’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $1.78, for a total value of $695,403.28. Following the transaction, the insider owned 341,515 shares of the company’s stock, valued at approximately $607,896.70. This represents a 53.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 3.60% of the stock is owned by company insiders.

Institutional Trading of Sleep Number

Several institutional investors have recently added to or reduced their stakes in SNBR. Russell Investments Group Ltd. grew its stake in shares of Sleep Number by 3.6% during the fourth quarter. Russell Investments Group Ltd. now owns 37,660 shares of the company’s stock valued at $319,000 after buying an additional 1,320 shares during the last quarter. Public Employees Retirement System of Ohio lifted its stake in shares of Sleep Number by 3.1% in the 4th quarter. Public Employees Retirement System of Ohio now owns 44,798 shares of the company’s stock valued at $379,000 after acquiring an additional 1,326 shares during the last quarter. State Street Corp boosted its holdings in Sleep Number by 0.4% during the 4th quarter. State Street Corp now owns 456,627 shares of the company’s stock valued at $3,863,000 after acquiring an additional 1,994 shares during the period. Quadrature Capital Ltd grew its position in Sleep Number by 48.3% during the 4th quarter. Quadrature Capital Ltd now owns 15,305 shares of the company’s stock worth $129,000 after acquiring an additional 4,987 shares during the last quarter. Finally, Marks Group Wealth Management Inc grew its position in Sleep Number by 50.0% during the 1st quarter. Marks Group Wealth Management Inc now owns 15,000 shares of the company’s stock worth $27,000 after acquiring an additional 5,000 shares during the last quarter. 85.67% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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