Sleep Number Insiders Placed Bullish Bets Worth US$510.1k

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Sleep Number Corporation (NASDAQ:SNBR), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Sleep Number

The Last 12 Months Of Insider Transactions At Sleep Number

In the last twelve months, the biggest single purchase by an insider was when insider Stephen Macadam bought US$485k worth of shares at a price of US$9.70 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$13.57. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Sleep Number insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Sleep Number

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 4.6% 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 Does This Data Suggest About Sleep Number Insiders?

It doesn't really mean much that no insider has traded Sleep Number shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Sleep Number and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sleep Number. Case in point: We've spotted 3 warning signs for Sleep Number you should be aware of, and 2 of them don't sit too well with us.

But note: Sleep Number may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.