Sonos (NASDAQ:SONO) Lowered to Hold Rating by Wall Street Zen

Wall Street Zen downgraded shares of Sonos (NASDAQ:SONO) from a buy rating to a hold rating in a research note issued to investors on Saturday.

A number of other research analysts also recently issued reports on the stock. Morgan Stanley set a $17.00 price target on shares of Sonos and gave the stock an “equal weight” rating in a research note on Thursday, November 6th. Rosenblatt Securities lifted their price objective on shares of Sonos from $17.00 to $21.00 and gave the stock a “buy” rating in a research report on Thursday, November 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Sonos in a research note on Wednesday, October 8th. Finally, Jefferies Financial Group raised their price target on Sonos from $19.00 to $21.00 and gave the company a “buy” rating in a research note on Monday, January 5th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Sonos currently has a consensus rating of “Hold” and a consensus target price of $19.67.

Sonos Price Performance

Shares of NASDAQ SONO opened at $15.85 on Friday. The stock’s 50-day moving average is $17.63 and its two-hundred day moving average is $15.31. Sonos has a 1-year low of $7.63 and a 1-year high of $19.82. The company has a market cap of $1.92 billion, a price-to-earnings ratio of -30.48 and a beta of 2.02.

Sonos (NASDAQ:SONO) last posted its quarterly earnings results on Wednesday, November 5th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.11). Sonos had a negative net margin of 4.24% and a negative return on equity of 11.66%. The company had revenue of $287.90 million during the quarter, compared to analyst estimates of $535.43 million. During the same period in the prior year, the business earned ($0.44) EPS. Sonos’s revenue for the quarter was up 12.7% on a year-over-year basis. Equities research analysts anticipate that Sonos will post -0.37 earnings per share for the current fiscal year.

Insider Buying and Selling at Sonos

In other news, CEO Thomas Conrad bought 62,325 shares of the business’s stock in a transaction dated Monday, November 17th. The shares were acquired at an average price of $16.17 per share, for a total transaction of $1,007,795.25. Following the completion of the transaction, the chief executive officer owned 305,103 shares of the company’s stock, valued at approximately $4,933,515.51. This trade represents a 25.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Edward P. Lazarus sold 12,000 shares of the business’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $19.00, for a total value of $228,000.00. Following the completion of the sale, the insider directly owned 423,219 shares of the company’s stock, valued at $8,041,161. The trade was a 2.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its holdings in shares of Sonos by 10.2% in the fourth quarter. GAMMA Investing LLC now owns 6,832 shares of the company’s stock valued at $120,000 after acquiring an additional 631 shares during the period. Centaurus Financial Inc. raised its position in Sonos by 6.6% in the 3rd quarter. Centaurus Financial Inc. now owns 11,056 shares of the company’s stock valued at $175,000 after purchasing an additional 681 shares during the last quarter. Arizona State Retirement System boosted its stake in Sonos by 2.3% during the 3rd quarter. Arizona State Retirement System now owns 31,970 shares of the company’s stock worth $505,000 after purchasing an additional 706 shares during the period. Thrivent Financial for Lutherans grew its position in Sonos by 1.0% during the 2nd quarter. Thrivent Financial for Lutherans now owns 88,302 shares of the company’s stock worth $955,000 after purchasing an additional 833 shares during the last quarter. Finally, Nisa Investment Advisors LLC grew its position in Sonos by 31.0% during the 3rd quarter. Nisa Investment Advisors LLC now owns 4,195 shares of the company’s stock worth $66,000 after purchasing an additional 992 shares during the last quarter. Institutional investors and hedge funds own 85.82% of the company’s stock.

About Sonos

Sonos, Inc is a consumer electronics company specializing in wireless home audio systems. The company’s core business revolves around designing, developing and manufacturing smart speakers and soundbars that deliver high-fidelity audio and seamless multi-room listening experiences. Sonos products connect via Wi-Fi or Bluetooth and integrate with popular streaming services, enabling users to control music and other audio content through a dedicated mobile app, voice assistants or traditional controls.

Sonos offers a diversified product lineup that includes compact speakers such as Sonos One and Sonos Roam, premium models like Sonos Five and Sonos Move, home theater solutions including Sonos Beam and Sonos Arc, as well as accessories such as the Sonos Sub and Sonos Amp.