Should You Exit Your Position in Sleep Number Corporation (SNBR)?

Investment management company Vulcan Value Partners recently released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm has five strategies, and all gained positive returns and outperformed their respective benchmark indexes in the first quarter. The fund’s Large-Cap Composite returned 14.0% net of fees and expenses, the Small Cap Composite returned 8.1% net, the Focus Composite returned 20.4% net, the Focus Plus composite returned 20.4%, and the All-Cap Composite returned 16.8% net. You can check the top 5 holdings of the fund to know its best picks in 2023.

Vulcan Value Partners highlighted stocks like Sleep Number Corporation (NASDAQ:SNBR) in the first quarter 2023 investor letter. Headquartered in Minneapolis, Minnesota, Sleep Number Corporation (NASDAQ:SNBR) designs and manufactures beds, pillows and other sleep related bedding products. On May 5, 2023, Sleep Number Corporation (NASDAQ:SNBR) stock closed at $23.11 per share. One-month return of Sleep Number Corporation (NASDAQ:SNBR) was -16.93%, and its shares lost 44.98% of their value over the last 52 weeks. Sleep Number Corporation (NASDAQ:SNBR) has a market capitalization of $512.672 million.

Vulcan Value Partners made the following comment about Sleep Number Corporation (NASDAQ:SNBR) in its Q1 2023 investor letter:

“We sold Sleep Number Corporation (NASDAQ:SNBR) during the quarter. In late January, Sleep Number announced that the CFO, David Callen, was stepping down to pursue other opportunities. We respected David Callen as a key leader. Sleep Number has an elevated level of debt combined with ongoing supply issues and a likely tough macro environment. The abrupt departure of David Callen within this environment concerned us, and we exited the position.”

Sleep Number Corporation (NASDAQ:SNBR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Sleep Number Corporation (NASDAQ:SNBR) at the end of the fourth quarter which was 18 in the previous quarter.

We discussed Sleep Number Corporation (NASDAQ:SNBR) in another article and shared the list of best furniture-related stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.