In This Article:
Sleep Number Corporation (NASDAQ:SNBR) shareholders (or potential shareholders) will be happy to see that insider Linda Kozlowski recently bought a whopping US$751k worth of stock, at a price of US$7.19. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 19%.
Sleep Number Insider Transactions Over The Last Year
In fact, the recent purchase by Linda Kozlowski was the biggest purchase of Sleep Number shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$7.99. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Sleep Number insiders decided to buy shares at close to current prices.
While Sleep Number insiders bought shares during the last year, they didn't sell. The average buy price was around US$9.62. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Sleep Number
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.1% of Sleep Number shares, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Sleep Number Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Sleep Number shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sleep Number. While conducting our analysis, we found that Sleep Number has 3 warning signs and it would be unwise to ignore them.