Sleep Number surges as lenders grant covenant relief and $55M liquidity boost

Sleep Number Corporation (SNBR) is up 68.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The stock appears to be reacting to a credit agreement amendment that added incremental liquidity and temporarily eased key covenant pressure, reducing near-term bankruptcy/restructuring fears. Given SNBR’s elevated short interest and small-cap volatility, the financing news may also have triggered short covering that amplified the move.

Details:

Sleep Number entered a forbearance agreement and amended its credit facility, adding $55 million of liquidity including a new $25 million term loan.

The new term loan carries interest of one-month term SOFR plus 8% and matures on June 30, 2026, with an amortization payment due June 1, 2026.

The amendment included covenant relief, including suspending the $30 million minimum liquidity covenant until the first week ending after July 1, 2026, and lender forbearance on certain defaults (subject to termination events).

The amended agreement also set milestones tied to pursuing a strategic transaction intended to maximize enterprise value and repay lender obligations in full, a development that can reshape investor expectations.

Sources:

U.S. SEC (Form 8-K), Sleep Number (press release), MarketBeat

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

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$SNBR Hedge Fund Activity

We have seen 42 institutional investors add shares of $SNBR stock to their portfolio, and 84 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

FMR LLC added 1,364,104 shares (+178.1%) to their portfolio in Q4 2025, for an estimated $11,540,319
MILLENNIUM MANAGEMENT LLC removed 716,873 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $6,064,745
CHARLES SCHWAB INVESTMENT MANAGEMENT INC added 384,124 shares (+52.1%) to their portfolio in Q4 2025, for an estimated $3,249,689
PACIFIC RIDGE CAPITAL PARTNERS, LLC added 371,336 shares (+48.0%) to their portfolio in Q4 2025, for an estimated $3,141,502
BANK OF AMERICA CORP /DE/ removed 347,404 shares (-80.1%) from their portfolio in Q4 2025, for an estimated $2,939,037
ROYAL BANK OF CANADA removed 294,504 shares (-93.0%) from their portfolio in Q4 2025, for an estimated $2,491,503
FORMULA GROWTH LTD removed 231,793 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $1,960,968

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API.

$SNBR Price Targets

Multiple analysts have issued price targets for $SNBR recently. We have seen 2 analysts offer price targets for $SNBR in the last 6 months, with a median target of $4.5.

Here are some recent targets:

Peter Keith from Piper Sandler set a target price of $5.0 on 03/13/2026
Dan Silverstein from UBS set a target price of $4.0 on 03/13/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.