Sleep Number (SNBR) Stock Crashes After Hours: Why Is It Moving?

Sleep Number Corp. (NASDAQ:SNBR) shares plunged 31% in after-hours trading on Wednesday after the company disclosed that Nasdaq plans to delist its common stock following the mattress maker's recent Chapter 11 bankruptcy filing.

Sleep Number is a sleep wellness company known for its smart mattresses, adjustable beds and sleep technology products.

Delisting Notice Sparks Fresh Selling

Sleep Number said in an SEC Form 8-K filing that it received a notice from The Nasdaq Stock Market on June 16 stating the exchange has determined to delist the company's shares.

The decision follows the company's previously announced Chapter 11 bankruptcy filing on June 12. Nasdaq cited public interest concerns, uncertainty around residual equity value for common shareholders and concerns about the company's ability to maintain listing compliance.

Trading in SNBR stock on Nasdaq will be suspended at the start of business on June 23, 2026. The company said it does not intend to appeal the decision.

After the suspension, Sleep Number shares may trade on over-the-counter markets, although the company said there is no assurance an active market will develop.

The delisting announcement likely increased concerns that common shareholders could face little or no recovery during the bankruptcy process.

Trading Metrics, Technical Analysis

Sleep Number has a market capitalization of approximately $8.82 million.

The stock has traded between a 52-week high of $6.79 and a 52-week low of $0.18.

Over the past 12 months, SNBR shares have declined approximately 94.57%.

Price Action: According to market data, SNBR closed Wednesday's regular session at $0.39, up 120.84% on the day.

The stock then fell 31% in after-hours trading to $0.27 as investors reacted to the Nasdaq delisting notice.

Benzinga Edge Stock Rankings indicate SNBR has negative short-term, medium-term and long-term price trends.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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