Sleep Number (SNBR) Soars 4.72% on Insider Buying

Sleep Number (SNBR) shares surged 4.72% today, marking the third consecutive day of gains, with a cumulative increase of 14.31% over the past three days. The stock price reached its highest level since March 2025, with an intraday gain of 13.11%.

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 4.33% annualized gain. However, the strategy underperformed the market, with an average annual return of 2.24% compared to the S&P 500's 7.24% return over the same period. The maximum drawdown of -17.6% during the 2022 market downturn highlighted the strategy's vulnerability in declining markets. Overall, while the strategy provided some growth, it exposed investors to significant volatility and did not keep pace with the broader market's performance.

Linda Findley, the President and CEO of Sleep Number Corp, recently purchased 104,520 shares of the company on May 8, 2025. This significant insider buying activity is seen as a positive indicator, reflecting the leadership's confidence in the company's future prospects. Such actions often instill investor trust and can drive stock prices higher.

In addition to the insider buying, there are positive forecasts for Sleep Number's stock. Analysts have noted that short-term averages are above long-term averages, suggesting a general buy signal. This technical analysis supports a potential positive sentiment towards Sleep Number's stock price movement in the market.