Sleep Number Corporation (NASDAQ: SNBR) stock jumped 0.46% on Wednesday to $30.25 against a previous-day closing price of $30.11. With 0.24 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.48 million shares. During the session, the Furnishings Fixtures & Appliances company that operates in wider Consumer Cyclical sector, reached to the highest price of $30.44 whereas the lowest price it dropped to was $29.53. The 52-week range on SNBR shows that it touched its highest point at $83.81 and its lowest point at $24.04 during that stretch. It currently has a 1-year price target of $28.00. Beta for the stock currently stands at 1.84.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SNBR was down-trending over the past week, with a drop of -7.41%, but this was down by -15.81% over a month. Three-month performance dropped to -30.57% while six-month performance fell -30.81%. The stock lost -62.99% in the past year, while it has lost -60.51% so far this year. A look at the trailing 12-month EPS for SNBR yields 2.32 with Next year EPS estimates of 2.07. For the next quarter, that number is -0.14. This implies an EPS growth rate of 25.90% for this year and 21.22% for next year. EPS is expected to grow by 6.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 41.20%.
Float and Shares Shorts:
At present, 22.22 million SNBR shares are outstanding with a float of 20.96 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.06 million, which was 13.95% higher than short shares on Sep 14, 2022. In addition to Ms. Shelly R. Ibach as the firm’s CEO, Pres & Chair, Mr. David R. Callen serves as its Exec. VP & CFO.
Through their ownership of 107.28% of SNBR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.48% of SNBR, in contrast to 58.14% held by mutual funds. Shares owned by individuals account for 46.63%. As the largest shareholder in SNBR with 14.53% of the stake, BlackRock Fund Advisors holds 3,190,771 shares worth 3,190,771. A second-largest stockholder of SNBR, The Vanguard Group, Inc., holds 2,275,235 shares, controlling over 10.36% of the firm’s shares. Disciplined Growth Investors, Inc is the third largest shareholder in SNBR, holding 2,136,268 shares or 9.73% stake. With a 7.41% stake in SNBR, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 1,626,539 shares are owned by the mutual fund manager. The Kempen Intl. Funds – Global Small, which owns about 3.29% of SNBR stock, is the second-largest Mutual Fund holder. It holds 722,987 shares valued at 20.06 million. Vanguard Total Stock Market Index holds 2.88% of the stake in SNBR, owning 633,551 shares worth 17.57 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SNBR since 5 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SNBR analysts setting a high price target of $31.00 and a low target of $26.00, the average target price over the next 12 months is $28.00. Based on these targets, SNBR could surge 2.48% to reach the target high and fall by -14.05% to reach the target low. Reaching the average price target will result in a decline of -7.44% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SNBR will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $1.80 being high and $1.60 being low. For SNBR, this leads to a yearly average estimate of $1.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sleep Number Corporation surprised analysts by $0.16 when it reported $0.22 EPS against a consensus estimate of $0.06. The surprise factor in the prior quarter was $0.92. Based on analyst estimates, the high estimate for the next quarter is -$0.04 and the low estimate is -$0.26. The average estimate for the next quarter is thus -$0.14.
Summary of Insider Activity:
Insiders traded SNBR stock several times over the past three months with 6 Buys and 3 Sells. In these transactions, 40,031 shares were bought while 21,264 shares were sold. The number of buy transactions has increased to 41 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 315,739 while 187,450 shares were sold.