Lakewood Capital Management LP Lowers Position in Sleep Number Corporation $SNBR

Lakewood Capital Management LP trimmed its position in shares of Sleep Number Corporation (NASDAQ:SNBR) by 80.6% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 55,798 shares of the company’s stock after selling 231,211 shares during the quarter. Lakewood Capital Management LP’s holdings in Sleep Number were worth $392,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Russell Investments Group Ltd. increased its stake in shares of Sleep Number by 11.3% during the 2nd quarter. Russell Investments Group Ltd. now owns 37,026 shares of the company’s stock worth $250,000 after purchasing an additional 3,764 shares in the last quarter. Bridgeway Capital Management LLC lifted its stake in Sleep Number by 15.9% in the 2nd quarter. Bridgeway Capital Management LLC now owns 40,100 shares of the company’s stock valued at $271,000 after buying an additional 5,500 shares in the last quarter. Geode Capital Management LLC lifted its stake in Sleep Number by 1.4% in the 2nd quarter. Geode Capital Management LLC now owns 530,764 shares of the company’s stock valued at $3,586,000 after buying an additional 7,570 shares in the last quarter. Vanguard Personalized Indexing Management LLC acquired a new stake in Sleep Number during the 3rd quarter valued at $70,000. Finally, Sei Investments Co. acquired a new stake in Sleep Number during the 2nd quarter valued at $73,000. 85.67% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Sleep Number

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

Analyst Upgrades and Downgrades

A number of 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. UBS Group decreased their price objective on Sleep Number from $10.00 to $4.00 and set a “neutral” rating on the stock in a research note on Friday. Finally, Piper Sandler dropped their price objective on Sleep Number from $12.00 to $5.00 and set a “neutral” rating for the company in a research report on Friday. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average target price of $4.50.

Sleep Number Stock Performance

SNBR stock opened at $3.45 on Friday. The company has a 50 day moving average price of $8.81 and a two-hundred day moving average price of $7.72. The stock has a market capitalization of $78.63 million, a P/E ratio of -0.60 and a beta of 1.93. Sleep Number Corporation has a one year low of $3.44 and a one year high of $13.94.

Sleep Number (NASDAQ:SNBR) last posted its quarterly earnings data on Thursday, March 12th. The company reported ($2.55) earnings per share (EPS) for the quarter, missing the consensus estimate 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. The firm’s revenue was down 7.8% on a year-over-year basis. During the same quarter last year, the business earned ($0.21) EPS. Research analysts forecast that Sleep Number Corporation will post -0.42 earnings per share for the current fiscal year.

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.