Zacks Research Downgrades Sonos (NASDAQ:SONO) to Hold

Sonos (NASDAQ:SONO) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other equities research analysts have also issued reports on SONO. Jefferies Financial Group upped their price objective on shares of Sonos from $19.00 to $21.00 and gave the company a “buy” rating in a report on Monday, January 5th. Wall Street Zen raised shares of Sonos from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Rosenblatt Securities reissued a “buy” rating and issued a $21.00 price objective on shares of Sonos in a report on Monday, February 2nd. Weiss Ratings reissued a “sell (d-)” rating on shares of Sonos in a report on Thursday, January 22nd. Finally, Morgan Stanley set a $18.00 target price on shares of Sonos in a research note on Wednesday, February 4th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $20.00.

Sonos Price Performance

Shares of SONO traded up $0.22 during mid-day trading on Monday, reaching $13.62. The stock had a trading volume of 98,249 shares, compared to its average volume of 1,681,560. Sonos has a 52-week low of $7.63 and a 52-week high of $19.82. The business’s fifty day moving average is $14.59 and its 200 day moving average is $16.19. The firm has a market cap of $1.65 billion, a price-to-earnings ratio of -79.72 and a beta of 1.99.

Sonos (NASDAQ:SONO) last announced its quarterly earnings data on Tuesday, February 3rd. The company reported $0.93 earnings per share (EPS) 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 firm had revenue of $545.66 million during the quarter, compared to analyst estimates of $536.93 million. During the same quarter in the prior year, the firm posted $0.64 earnings per share. Sonos’s quarterly revenue was down .9% on a year-over-year basis. As a group, sell-side analysts anticipate that Sonos will post -0.37 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, major shareholder Coliseum Capital Management, L bought 494,719 shares of the stock in a transaction on Wednesday, February 4th. The stock was bought at an average price of $15.50 per share, with a total value of $7,668,144.50. Following the completion of the purchase, the insider directly owned 15,424,999 shares in the company, valued at $239,087,484.50. This represents a 3.31% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders have bought a total of 3,140,482 shares of company stock worth $46,905,007 over the last ninety days. Company insiders own 1.25% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Hantz Financial Services Inc. boosted its stake in Sonos by 307.9% during the fourth quarter. Hantz Financial Services Inc. now owns 1,762 shares of the company’s stock worth $31,000 after buying an additional 1,330 shares during the period. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Sonos by 699.6% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,055 shares of the company’s stock valued at $36,000 after purchasing an additional 1,798 shares during the period. Daiwa Securities Group Inc. purchased a new position in shares of Sonos in the fourth quarter valued at approximately $50,000. Quarry LP boosted its stake in shares of Sonos by 485.8% in the third quarter. Quarry LP now owns 3,251 shares of the company’s stock valued at $51,000 after purchasing an additional 2,696 shares during the period. Finally, Kemnay Advisory Services Inc. purchased a new position in shares of Sonos in the fourth quarter valued at approximately $64,000. Hedge funds and other institutional investors own 85.82% of the company’s stock.

Sonos Company Profile

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.