Sonos (NASDAQ:SONO) Rating Increased to Strong-Buy at Wall Street Zen

Wall Street Zen upgraded shares of Sonos (NASDAQ:SONO) from a buy rating to a strong-buy rating in a research note published on Saturday.

A number of other research analysts have also weighed in on SONO. Weiss Ratings reiterated a “sell (d-)” rating on shares of Sonos in a research note on Thursday, January 22nd. Rosenblatt Securities reiterated a “buy” rating and issued a $21.00 price objective on shares of Sonos in a research note on Monday, February 2nd. Morgan Stanley set a $18.00 price objective on shares of Sonos in a research note on Wednesday, February 4th. Jefferies Financial Group boosted their price target on shares of Sonos from $19.00 to $21.00 and gave the company a “buy” rating in a research report on Monday, January 5th. Finally, Zacks Research lowered shares of Sonos from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 6th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Sonos currently has a consensus rating of “Hold” and an average price target of $20.00.

Sonos Trading Up 1.6%

Sonos stock opened at $14.37 on Friday. Sonos has a 1-year low of $7.82 and a 1-year high of $19.82. The firm has a market capitalization of $1.74 billion, a price-to-earnings ratio of -84.53 and a beta of 1.99. The firm has a 50 day simple moving average of $14.32 and a 200 day simple moving average of $16.08.

Sonos (NASDAQ:SONO) last released its quarterly earnings data on Tuesday, February 3rd. The company reported $0.93 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.08. Sonos had a negative net margin of 1.22% and a positive return on equity of 0.82%. The business had revenue of $545.66 million during the quarter, compared to analyst estimates of $536.93 million. During the same period in the previous year, the business earned $0.64 EPS. Sonos’s revenue was down .9% compared to the same quarter last year. On average, equities research analysts forecast that Sonos will post -0.37 EPS for the current year.

Insider Activity at Sonos

In other news, major shareholder Coliseum Capital Management, L purchased 494,719 shares of Sonos stock in a transaction dated Wednesday, February 4th. The stock was purchased at an average cost of $15.50 per share, for a total transaction of $7,668,144.50. Following the transaction, the insider directly owned 15,424,999 shares of the company’s stock, valued at approximately $239,087,484.50. This trade represents a 3.31% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last ninety days, insiders have acquired 3,140,482 shares of company stock worth $46,905,007. 1.25% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SONO. GAMMA Investing LLC grew its position in Sonos by 10.2% in the fourth quarter. GAMMA Investing LLC now owns 6,832 shares of the company’s stock worth $120,000 after acquiring an additional 631 shares in the last quarter. Centaurus Financial Inc. grew its position in Sonos by 6.6% in the third quarter. Centaurus Financial Inc. now owns 11,056 shares of the company’s stock worth $175,000 after acquiring an additional 681 shares in the last quarter. Arizona State Retirement System grew its position in Sonos by 2.3% in the third quarter. Arizona State Retirement System now owns 31,970 shares of the company’s stock worth $505,000 after acquiring an additional 706 shares in the last quarter. State of Wisconsin Investment Board grew its position in Sonos by 1.7% in the fourth quarter. State of Wisconsin Investment Board now owns 43,982 shares of the company’s stock worth $772,000 after acquiring an additional 724 shares in the last quarter. Finally, Intech Investment Management LLC grew its position in Sonos by 0.7% in the fourth quarter. Intech Investment Management LLC now owns 117,718 shares of the company’s stock worth $2,067,000 after acquiring an additional 776 shares in the last quarter. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Sonos

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Strong promotional activity — Sonos ran an Earth Day sale with steep discounts (notably >50% on the Sonos Sub), which can drive short-term unit sales and website traffic. Article Title
• Positive Sentiment: Additional sale coverage highlights large discounts across soundbars, speakers and refurbished inventory — these promotions can accelerate sell-through and reduce channel inventories. Article Title
• Positive Sentiment: Third-party deal coverage (promo codes and deep discounts on key SKUs like Era/Arc soundbars) increases consumer reach and may lift near-term sales momentum. Article Title
• Neutral Sentiment: Editorial reviews of newer, lower-priced models (Era 100 SL) frame Sonos as expanding its accessible lineup — helpful for brand breadth but unclear how quickly it converts to durable share gains. Article Title
• Neutral Sentiment: Positive product reviews (e.g., Play and Era family) reinforce Sonos’ premium audio reputation, supporting long-term brand value but not guaranteeing immediate margin upside. Article Title
• Negative Sentiment: Competitive pressure: firsthand accounts and reviews report defections to Denon’s new speakers, signaling rivalry on features and value that could weigh on Sonos’ pricing power and market share. Article Title
• Negative Sentiment: Margin risk from discounting — while promotions lift sales, sustained deep discounts can compress ASPs and hurt already thin profitability. Article Title

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.