Sonos (NASDAQ:SONO) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of Sonos (NASDAQ:SONO) from a buy rating to a hold rating in a research report released on Saturday.

Several other analysts also recently commented on the company. Jefferies Financial Group increased their target price on Sonos from $19.00 to $21.00 and gave the company a “buy” rating in a research note on Monday, January 5th. Rosenblatt Securities raised their price target on shares of Sonos from $17.00 to $21.00 and gave the company a “buy” rating in a report on Thursday, November 6th. 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. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Sonos in a research report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Sonos currently has an average rating of “Hold” and an average price target of $19.67.

Sonos Trading Down 0.5%

Shares of SONO opened at $15.85 on Friday. The stock has a 50-day moving average price of $17.61 and a 200-day moving average price of $15.37. The company has a market cap of $1.92 billion, a PE ratio of -30.48 and a beta of 2.02. Sonos has a 12-month low of $7.63 and a 12-month high of $19.82.

Sonos (NASDAQ:SONO) last announced its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $535.43 million. During the same period last year, the business posted ($0.44) earnings per share. The firm’s quarterly revenue was up 12.7% compared to the same quarter last year. As a group, analysts predict that Sonos will post -0.37 earnings per share for the current year.

Insider Buying and Selling at Sonos

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

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC raised its position in shares of Sonos by 10.2% during the 4th quarter. GAMMA Investing LLC now owns 6,832 shares of the company’s stock valued at $120,000 after buying an additional 631 shares during the period. Centaurus Financial Inc. lifted its position in shares of Sonos by 6.6% during the third quarter. Centaurus Financial Inc. now owns 11,056 shares of the company’s stock worth $175,000 after purchasing an additional 681 shares in the last quarter. Arizona State Retirement System boosted its holdings in Sonos by 2.3% in the third quarter. Arizona State Retirement System now owns 31,970 shares of the company’s stock valued at $505,000 after purchasing an additional 706 shares during the period. Thrivent Financial for Lutherans increased its stake in shares of Sonos by 1.0% during the second quarter. Thrivent Financial for Lutherans now owns 88,302 shares of the company’s stock worth $955,000 after buying an additional 833 shares during the period. Finally, Nisa Investment Advisors LLC grew its stake in shares of Sonos by 31.0% during the third quarter. Nisa Investment Advisors LLC now owns 4,195 shares of the company’s stock worth $66,000 after purchasing an additional 992 shares in 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.