Sleep Number Shares Surge 18% on Insider Buying Amid Cautious Analyst Outlook

Sleep Number (SNBR) shares surged 18% after insider buying by Interim CFO Robert Ryder. Current analyst forecasts suggest a potential downside, while GuruFocus estimates indicate significant upside potential. Brokerage consensus places Sleep Number at a "Hold" rating with varied predictions on its future valuation.

Sleep Number Corporation (SNBR) shares surged 18% on Tuesday, August 5, 2025, after interim CFO Robert Ryder's significant insider buying. The stock price gained 19.74% on the last trading day, rising from $7.60 to $9.10. This substantial increase comes despite recent analyst forecasts suggesting a potential downside and a brokerage consensus placing the stock at a "Hold" rating [1].

The surge in SNBR shares follows insider buying by Robert Ryder, who acquired 61,020 shares at an average price of $7.12 per share, totaling $434,462.40 [2]. The purchase represents a 11.24% increase in Ryder's ownership of the stock. Additionally, CFO Francis K. Lee acquired 7,200 shares of the stock, increasing his ownership by 8.39% [2].

Analyst forecasts vary widely. While some analysts have issued "buy" ratings, others have downgraded the stock to a "hold" rating. For instance, Wall Street Zen recently downgraded SNBR from "buy" to "hold," while UBS Group set a price objective of $7.00 per share [2]. GuruFocus estimates, however, indicate significant upside potential for the stock.

Technical indicators also suggest a positive outlook. The stock has shown buy signals from both short and long-term moving averages, with a general buy signal from the relation between the two averages. The 3-month Moving Average Convergence Divergence (MACD) also indicates a buy signal [1]. However, the stock is considered "high risk" due to its high daily movements and large prediction interval from the Bollinger Band [1].

Sleep Number Corporation, which offers sleep solutions and services in the United States, designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand and smart beds under the Climate 360 name [2].

Institutional investors hold 85.67% of SNBR's stock, indicating strong institutional interest. Pacific Ridge Capital Partners LLC, Vanguard Group Inc., JPMorgan Chase & Co., Arrowstreet Capital Limited Partnership, ExodusPoint Capital Management LP, and Wells Fargo & Company MN have all recently increased their stakes in the company [2].

For the upcoming trading day on Wednesday, August 6, 2025, the stock is expected to open at $8.87, with a possible trading interval of +/-$0.88 (+/-10.18%) up or down from the last closing price [1]. Despite the recent surge, the stock remains in a falling trend, and analysts predict a potential downside over the next three months.

References:
[1] https://stockinvest.us/stock/SNBR
[2] https://www.marketbeat.com/instant-alerts/filing-pacific-ridge-capital-partners-llc-has-399-million-position-in-sleep-number-corporation-nasdaqsnbr-2025-08-02/