Lakewood Capital Management LP Trims Stock Position in Sleep Number Corporation $SNBR

Lakewood Capital Management LP decreased its stake in Sleep Number Corporation (NASDAQ:SNBR) by 80.6% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 55,798 shares of the company’s stock after selling 231,211 shares during the period. Lakewood Capital Management LP owned 0.24% of Sleep Number worth $392,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of SNBR. SG Capital Management LLC acquired a new stake in shares of Sleep Number during the second quarter worth about $2,145,000. AlphaQuest LLC boosted its position in shares of Sleep Number by 209.1% in the 3rd quarter. AlphaQuest LLC now owns 64,367 shares of the company’s stock valued at $452,000 after purchasing an additional 43,540 shares during the period. Allianz Asset Management GmbH grew its stake in Sleep Number by 123.2% during the 3rd quarter. Allianz Asset Management GmbH now owns 173,341 shares of the company’s stock worth $1,217,000 after buying an additional 95,683 shares during the last quarter. Vanguard Personalized Indexing Management LLC acquired a new position in Sleep Number during the third quarter worth approximately $70,000. Finally, First Dallas Securities Inc. acquired a new position in Sleep Number during the third quarter worth approximately $91,000. 85.67% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently weighed in on SNBR. Weiss Ratings reissued a “sell (e+)” rating on shares of Sleep Number in a report on Friday, January 9th. Piper Sandler cut their target price on shares of Sleep Number from $12.00 to $5.00 and set a “neutral” rating on the stock in a report on Friday. Finally, UBS Group decreased their price target on shares of Sleep Number from $10.00 to $4.00 and set a “neutral” rating for the company in a research note on Friday. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $4.50.

Sleep Number Stock Down 6.0%

SNBR opened at $3.45 on Friday. The business has a 50 day moving average price of $8.81 and a two-hundred day moving average price of $7.72. The company has a market cap of $78.63 million, a PE ratio of -0.60 and a beta of 1.93. Sleep Number Corporation has a 52 week low of $3.44 and a 52 week high of $13.94.

Sleep Number (NASDAQ:SNBR) last released its earnings results on Thursday, March 12th. The company reported ($2.55) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.56) by ($1.99). The firm had revenue of $347.39 million during the quarter, compared to analyst estimates of $328.67 million. During the same quarter in the prior year, the firm posted ($0.21) earnings per share. The company’s revenue for the quarter was down 7.8% on a year-over-year basis. As a group, sell-side analysts expect that Sleep Number Corporation will post -0.42 EPS for the current fiscal year.

More Sleep Number News

Here are the key news stories impacting Sleep Number this week:

• Positive Sentiment: Management announced a major product reset — five new beds aimed at delivering a more approachable luxury offering that could re?ignite demand and improve price competitiveness. Product launch starts March 23; this is being framed as the largest portfolio refresh in nearly a decade. Sleep Number Redesigns Its Mattress Portfolio
• Positive Sentiment: Company reiterated a turnaround plan, calling for double?digit second?half sales growth and noting progress on cost reductions and margin recovery (pro?forma adjusted EBITDA ~9% for FY25). This provides a timeline for improvement that could support recovery if execution meets guidances. Sleep Number outlines double-digit second-half sales growth
• Neutral Sentiment: Top line slightly beat estimates — Q4 revenue of $347M topped consensus (~$328M) despite being down ~7.8% year?over?year. A revenue beat eases some concern but the decline underscores continuing demand weakness. Sleep Number Announces Fourth-Quarter and Full-Year 2025 Results
• Neutral Sentiment: Analyst action: Piper Sandler cut its price target from $12 to $5 and assigned a “neutral” rating — a lower bar for expectations but still implies upside from current levels, adding mixed signals for sentiment. Benzinga
• Negative Sentiment: A large EPS miss: Sleep Number reported a substantial loss (reported as ($2.55)/share in company release and other outlets noting deepened per?share losses versus expectations), missing consensus by a wide margin. The magnitude of the EPS miss increases near?term uncertainty and likely drove selling pressure. Sleep Number Q4 Earnings Report
• Negative Sentiment: Stock is trading near its 52?week low and saw elevated volume on the news, reflecting weak investor confidence until clearer signs of demand recovery and margin stabilization appear. Zacks: Q4 Loss, Tops Revenue Estimates

Sleep Number 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.