Sonos (NASDAQ:SONO) Shares Gap Up on Better-Than-Expected Earnings

Shares of Sonos, Inc. (NASDAQ:SONO) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $14.63, but opened at $16.10. Sonos shares last traded at $16.4940, with a volume of 600,729 shares traded.

The company reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.85 by $0.08. Sonos had a negative return on equity of 11.66% and a negative net margin of 4.24%.The company had revenue of $545.66 million for the quarter, compared to analysts’ expectations of $536.93 million. During the same quarter in the previous year, the business posted $0.64 EPS. The business’s revenue for the quarter was down .9% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on SONO shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Sonos in a report on Thursday, January 22nd. Morgan Stanley set a $17.00 price objective on Sonos and gave the stock an “equal weight” rating in a research note on Thursday, November 6th. Wall Street Zen lowered shares of Sonos from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Jefferies Financial Group increased their price target on Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $21.00 price objective on shares of Sonos in a research note on Monday. Two investment 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.com, the company presently has an average rating of “Hold” and a consensus price target of $19.67.

Insider Transactions at Sonos

In related news, insider Edward P. Lazarus sold 12,000 shares of Sonos stock in a transaction dated 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 approximately $8,041,161. The trade was a 2.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Thomas Conrad bought 62,325 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The shares were bought at an average price of $16.17 per share, for a total transaction of $1,007,795.25. Following the acquisition, the chief executive officer directly owned 305,103 shares of the company’s stock, valued at $4,933,515.51. This represents a 25.67% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 1.25% of the company’s stock.

Hedge Funds Weigh In On Sonos

Several hedge funds and other institutional investors have recently modified their holdings of the business. Nisa Investment Advisors LLC lifted its holdings in shares of Sonos by 65.6% during the second quarter. Nisa Investment Advisors LLC now owns 3,203 shares of the company’s stock worth $35,000 after purchasing an additional 1,269 shares during the period. Farther Finance Advisors LLC grew its stake in Sonos by 222.7% in the second quarter. Farther Finance Advisors LLC now owns 3,714 shares of the company’s stock valued at $40,000 after acquiring an additional 2,563 shares during the period. Quarry LP increased its holdings in shares of Sonos by 485.8% during the third quarter. Quarry LP now owns 3,251 shares of the company’s stock valued at $51,000 after acquiring an additional 2,696 shares in the last quarter. Centaurus Financial Inc. lifted its holdings in shares of Sonos by 9.0% in the 2nd quarter. Centaurus Financial Inc. now owns 10,375 shares of the company’s stock worth $112,000 after purchasing an additional 856 shares in the last quarter. Finally, Transcend Capital Advisors LLC acquired a new stake in Sonos in the 2nd quarter valued at $119,000. Institutional investors own 85.82% of the company’s stock.

Sonos Stock Performance

The stock’s 50 day simple moving average is $17.20 and its 200 day simple moving average is $15.70. The firm has a market cap of $1.91 billion, a P/E ratio of -30.78 and a beta of 2.05.

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.