Sleep Number Target of Unusually Large Options Trading (NASDAQ:SNBR)

Sleep Number Co. (NASDAQ:SNBR) was the target of unusually large options trading activity on Thursday. Traders purchased 3,428 call options on the stock. This is an increase of 350% compared to the typical daily volume of 761 call options.

SNBR traded down $11.11 on Thursday, hitting $113.82. 57,897 shares of the company were exchanged, compared to its average volume of 524,511. The business’s fifty day moving average is $134.95 and its 200 day moving average is $97.85. Sleep Number has a fifty-two week low of $21.50 and a fifty-two week high of $151.44. The firm has a market capitalization of $2.82 billion, a P/E ratio of 31.05, a price-to-earnings-growth ratio of 1.09 and a beta of 2.07.

Sleep Number (NASDAQ:SNBR) last issued its earnings results on Tuesday, April 20th. The company reported $2.51 earnings per share for the quarter, topping the consensus estimate of $1.83 by $0.68. Sleep Number had a net margin of 5.89% and a negative return on equity of 70.15%. The company had revenue of $568.26 million for the quarter, compared to analyst estimates of $582.34 million. During the same period in the prior year, the business posted $1.36 earnings per share. The firm’s revenue for the quarter was up 20.2% compared to the same quarter last year. On average, sell-side analysts predict that Sleep Number will post 4.11 earnings per share for the current fiscal year.

In related news, Director Jean Michel Valette sold 25,000 shares of Sleep Number stock in a transaction that occurred on Monday, April 5th. The shares were sold at an average price of $137.70, for a total value of $3,442,500.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Kathleen L. Nedorostek sold 7,370 shares of the firm’s stock in a transaction that occurred on Friday, February 26th. The shares were sold at an average price of $138.25, for a total transaction of $1,018,902.50. Over the last three months, insiders have sold 52,590 shares of company stock worth $6,987,878. Corporate insiders own 6.00% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Optimum Investment Advisors purchased a new stake in shares of Sleep Number in the first quarter valued at about $43,000. Vivid Financial Management Inc. purchased a new stake in shares of Sleep Number in the first quarter valued at about $292,000. Ballew Advisors Inc purchased a new stake in shares of Sleep Number in the first quarter valued at about $2,374,000. Everence Capital Management Inc. purchased a new stake in shares of Sleep Number in the first quarter valued at about $584,000. Finally, Alpha DNA Investment Management LLC purchased a new position in shares of Sleep Number during the fourth quarter valued at approximately $751,000. 94.32% of the stock is currently owned by institutional investors.

SNBR has been the topic of a number of recent research reports. Stifel Nicolaus restated a “buy” rating on shares of Sleep Number in a research note on Tuesday, January 26th. Wedbush lifted their price objective on shares of Sleep Number from $120.00 to $130.00 and gave the company a “neutral” rating in a research note on Thursday, February 18th. Piper Sandler lifted their price objective on shares of Sleep Number from $108.00 to $165.00 and gave the company an “overweight” rating in a research note on Thursday, February 25th. UBS Group upgraded shares of Sleep Number from a “sell” rating to a “neutral” rating and lifted their price objective for the company from $65.00 to $135.00 in a research note on Thursday, February 18th. Finally, TheStreet lowered shares of Sleep Number from a “b” rating to a “c+” rating in a research note on Friday, April 9th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $112.20.

About Sleep Number

Sleep Number Corporation, together with its subsidiaries, provides sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also offers adjustable bases under the FlextFit name; temperature-balancing products, including DualTemp layer; SleepIQ Kids k2 beds for kids; and smart beds under the Sleep Number 360 and 360 names.

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