Select Comfort Corp. (SCSS) Shares Tumble in Pre-Market – Fall Over 17%

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Investors of Select Comfort Corp. (NASDAQ:SCSS) are not all that happy this morning after the stock has fallen 17.36% to $16.95 per share. This comes after the manufacturer of Sleep Number beds reported a fourth quarter earnings miss. The company is blaiming much of the missed target on their decision to switch over to new business-management software. The company said they experienced more issues than originally anticipated in the switch.

Fourth quarter revenue came in at $214.7 million, falling well short of Wall Street’s estimates of $289.72 million. Select Comfort Corp. (NASDAQ:SCSS) also said they expect full-year 2016 GAAP earnings per share to come in at between $1.25 and $1.45.

“Many of our customers endured delays and delivery reschedules as we ramped up the new system. These results are not acceptable to us,” explained Select Comfort CEO Shelly Ibach.

The stock closed at $20.51 during the last trading session. It is down 32.11% since July 9, 2015 and is downtrending. It has underperformed the S&P500 by 22.64%.

From a total of 3 analysts covering Select Comfort (NASDAQ:SCSS) stock, 2 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $35 while the lowest target price is $22. The mean of all analyst targets is $28.25 which is 37.74% above today’s ($20.51) stock price. Select Comfort was the topic of 6 analyst reports since October 21, 2015 according to the firm StockzIntelligence Inc. Wedbush upgraded shares on January 29 to a “Outperform” rating. Stifel Nicolaus maintained SCSS stock in a recent report from November 5 with a “Buy” rating.

The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.32, from 1.39 in 2015Q2. The ratio is negative, as 46 funds sold all their Select Comfort Corp. shares they owned while 63 reduced their positions. 28 funds bought stakes while 89 increased their total positions. Institutions now own 45.48 million shares which is 9.91% less than the previous share count of 50.48 million in 2015Q2.

Blue Clay Capital Management Llc holds 15% of its total portfolio in Select Comfort Corp., equating to 860,297 shares. Birch Run Capital Advisors Lp owns 1.19 million shares representing 7.12% of their total US portfolio. Moreover, Disciplined Growth Investors Inc Mn has 2.07% of their total portfolio invested in the company, equating to 3.70 million shares. The New York-based Teewinot Capital Advisers L.L.C. has a total of 1.55% of their portfolio invested in the stock. Matterhorn Capital Management Llc, a Texas-based fund reported 131,025 shares owned.

Select Comfort Corporation is a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds. The company has a market cap of $1.04 billion. The Company’s Sleep Number bed offers SleepIQ technology sensors that work directly with the bed’s DualAir technology to monitor each individual’s sleep. It has 11.93 P/E ratio. The Firm also offers a line of sleep products including FlextFit adjustable base technology and Sleep Number pillows, sheets and other bedding products.

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