Sonos (NASDAQ:SONO) Downgraded to “Buy” Rating by Wall Street Zen

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

Other analysts have also recently issued reports about the stock. Weiss Ratings raised shares of Sonos from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, August 13th. Rosenblatt Securities reissued a “buy” rating and set a $21.00 price objective on shares of Sonos in a report on Thursday, July 30th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Sonos has an average rating of “Hold” and an average target price of $20.00.

Sonos Stock Down 1.4%

SONO stock opened at $15.83 on Friday. Sonos has a 52-week low of $12.44 and a 52-week high of $19.82. The stock’s 50 day moving average is $14.91 and its two-hundred day moving average is $14.79. The company has a market capitalization of $1.87 billion, a PE ratio of 35.18 and a beta of 1.95.

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

Insider Buying and Selling at Sonos

In other Sonos news, Director Julius Genachowski sold 19,855 shares of the stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $17.00, for a total transaction 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Centaurus Financial Inc. bought a new stake in shares of Sonos during the 2nd quarter valued at about $128,000. Formula Growth Ltd. bought a new position in Sonos in the second quarter worth about $676,000. Public Employees Retirement System of Ohio bought a new position in Sonos in the second quarter worth about $841,000. Capstone Investment Advisors LLC acquired a new position in Sonos in the second quarter valued at approximately $279,000. Finally, Corient Private Wealth LP acquired a new position in Sonos in the second quarter valued at approximately $231,000. 85.82% of the stock is owned by institutional investors and hedge funds.

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.