Piper Sandler Cuts Sleep Number (NASDAQ:SNBR) Price Target to $5.00

Key Points

• Piper Sandler cut Sleep Number's price target from $12 to $5 while keeping a "neutral" rating; MarketBeat's consensus remains a "Reduce" with an average price target of $7.50.
• Q4 results featured a major EPS miss (‑$2.55 vs. ‑$0.56 expected) despite revenue beating at $347M (down 7.8% YoY), prompting concerns about near‑term profitability even as management outlines a product reset and targets double‑digit H2 sales growth.
• Shares trade near $3.55 (close to a 52‑week low) with a market cap of about $80.9M and ~85.7% institutional ownership after several funds adjusted positions, a mix that could heighten volatility during the turnaround.

Sleep Number (NASDAQ:SNBR - Get Free Report) had its target price lowered by research analysts at Piper Sandler from $12.00 to $5.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Piper Sandler's price target would indicate a potential upside of 40.85% from the stock's current price.

SNBR has been the topic of several other research reports. UBS Group restated a "neutral" rating and set a $10.00 price target on shares of Sleep Number in a report on Thursday, February 12th. Weiss Ratings reissued a "sell (e+)" rating on shares of Sleep Number in a research report on Friday, January 9th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Sleep Number presently has a consensus rating of "Reduce" and an average price target of $7.50.

Sleep Number Stock Down 3.3%

SNBR stock traded down $0.12 during midday trading on Friday, hitting $3.55. The company's stock had a trading volume of 1,352,927 shares, compared to its average volume of 850,644. The firm has a 50-day simple moving average of $8.91 and a 200-day simple moving average of $7.76. The firm has a market capitalization of $80.90 million, a P/E ratio of -1.05 and a beta of 1.93. Sleep Number has a 52-week low of $3.49 and a 52-week high of $13.94.

Sleep Number (NASDAQ:SNBR - Get Free Report) last announced 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 company's quarterly revenue was down 7.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.21) EPS. On average, sell-side analysts expect that Sleep Number will post -0.42 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sleep Number

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SNBR. Pacific Ridge Capital Partners LLC boosted its stake in Sleep Number by 48.0% during the 4th quarter. Pacific Ridge Capital Partners LLC now owns 1,145,612 shares of the company's stock worth $9,692,000 after purchasing an additional 371,336 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in shares of Sleep Number by 52.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,121,245 shares of the company's stock valued at $9,486,000 after buying an additional 384,124 shares during the last quarter. Millennium Management LLC boosted its stake in shares of Sleep Number by 1,080.8% during the third quarter. Millennium Management LLC now owns 716,873 shares of the company's stock worth $5,032,000 after buying an additional 656,162 shares during the period. Geode Capital Management LLC boosted its stake in shares of Sleep Number by 1.4% during the second quarter. Geode Capital Management LLC now owns 530,764 shares of the company's stock worth $3,586,000 after buying an additional 7,570 shares during the period. Finally, Invenomic Capital Management LP purchased a new position in shares of Sleep Number during the third quarter worth about $3,411,000. 85.67% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Sleep Number

Here are the key news stories impacting Sleep Number this week:

• Positive Sentiment: Launched a major product reset — five new beds aimed at delivering a more luxurious experience at lower price points; management says availability starts March 23, which could help drive demand and better conversion if execution is strong. Sleep Number Redesigns Its Mattress Portfolio
• Positive Sentiment: Revenue topped analyst expectations for Q4 — the company reported roughly $347M in revenue versus consensus near $329M and said it exceeded 2025 guidance, signaling some operational progress during the turnaround. Sleep Number Exceeds Q4 Expectations
• Positive Sentiment: Management presented a plan targeting double-digit sales growth in the second half and highlighted cost reductions and a product/marketing reset — positive if execution sustains revenue and margin recovery. Sleep Number outlines double-digit second-half sales growth
• Neutral Sentiment: Full earnings call and transcripts are available for investors to review management’s commentary and Q&A for color on cadence to recovery and inventory/marketing plans. Q4 2025 Earnings Call Summary
• Neutral Sentiment: Product details and timing are public (March 23 online/in-store); market impact will depend on early sell-through and promotional strategy. Product Portfolio Coverage
• Negative Sentiment: Large EPS miss — the company reported a sizable per-share loss (well below consensus), which shocked the market and pressured the stock despite the revenue beat. This raises near-term profitability and cash-flow concerns. Q4 Loss Tops Estimates (Zacks)
• Negative Sentiment: Revenue declined ~7.8% year-over-year and margins remain under pressure (pro‑forma adjusted EBITDA ~9% for 2025), keeping execution risk and investor skepticism high while the turnaround progresses. Q4 and Full-Year 2025 Results (Business Wire)

About Sleep Number

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.