Sleep Number (SNBR) Shares Soar 6.93% Despite Earnings Miss

Sleep Number (SNBR) shares surged 6.93% today, reaching their highest level since March 2025 with an intraday gain of 12.21%.

The strategy of buying SNBR shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.77% annualized gain. This result indicates the effectiveness of this approach, although the returns were modest and suggest that market conditions and company performance may not have supported more significant gains.

On April 30, 2025, Sleep Number Co. released its quarterly earnings results, reporting a loss with an EPS of ($0.38), which fell short of analyst expectations. This financial underperformance likely dampened investor sentiment, contributing to the stock's volatility.

Despite the earnings miss, there was a notable positive development on May 10, 2025, when an insider purchased US$751k worth of stock. This insider buying activity is often interpreted as a bullish signal, suggesting confidence in the company's future prospects and potentially mitigating some of the negative impact from the earnings report.

Additionally, the company's revenue over the past twelve months was $1.61 billion, reflecting a year-over-year decline of 12.36% compared to 2024. This revenue decrease adds to the negative pressure on the stock price, as investors may be concerned about the company's ability to maintain its market position and profitability.