Formula Growth Ltd. Makes New Investment in Sonos, Inc. $SONO

Formula Growth Ltd. bought a new position in shares of Sonos, Inc. (NASDAQ:SONO) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 50,000 shares of the company’s stock, valued at approximately $676,000.

Several other institutional investors also recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership grew its position in Sonos by 2.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,307,363 shares of the company’s stock worth $44,319,000 after acquiring an additional 90,997 shares during the last quarter. Vanguard Group Inc. raised its position in Sonos by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 13,935,287 shares of the company’s stock valued at $244,704,000 after purchasing an additional 204,934 shares during the last quarter. BNP Paribas Financial Markets raised its position in Sonos by 46.2% in the fourth quarter. BNP Paribas Financial Markets now owns 951,810 shares of the company’s stock valued at $16,714,000 after purchasing an additional 300,735 shares during the last quarter. Crestwood Capital Management L.P. raised its position in Sonos by 54.5% in the fourth quarter. Crestwood Capital Management L.P. now owns 950,000 shares of the company’s stock valued at $16,682,000 after purchasing an additional 335,000 shares during the last quarter. Finally, Two Seas Capital LP acquired a new stake in shares of Sonos during the second quarter valued at about $9,615,000. 85.82% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Julius Genachowski sold 19,855 shares of the company’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $17.00, for a total value of $337,535.00. Following the sale, the director directly owned 53,775 shares of the company’s stock, valued at approximately $914,175. This represents a 26.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.25% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the company. Rosenblatt Securities restated a “buy” rating and set a $21.00 price target on shares of Sonos in a report on Thursday, July 30th. Weiss Ratings upgraded shares of Sonos from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, August 13th. Finally, Wall Street Zen downgraded shares of Sonos from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 22nd. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $20.00.

Sonos Price Performance

Shares of SONO opened at $15.10 on Friday. Sonos, Inc. has a 1 year low of $12.44 and a 1 year high of $19.82. The company has a market capitalization of $1.79 billion, a price-to-earnings ratio of 33.56 and a beta of 1.95. The business has a 50-day moving average of $14.95 and a 200-day moving average of $14.77.

Sonos (NASDAQ:SONO) last announced its earnings results on Wednesday, July 29th. The company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.04 by $0.23. Sonos had a return on equity of 19.10% and a net margin of 3.82%.The business had revenue of $375.26 million for the quarter, compared to analysts’ expectations of $365.65 million. During the same period in the prior year, the business posted ($0.03) earnings per share. The firm’s revenue was up 8.8% on a year-over-year basis. As a group, sell-side analysts anticipate that Sonos, Inc. will post 0.69 EPS for the current year.

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.