Sonos (NASDAQ:SONO) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Sonos from “buy” to “strong-buy.” Overall analyst sentiment is “Moderate Buy,” with a consensus price target of $20.
• Sonos reported quarterly EPS of $0.04, beating the consensus estimate of a $0.18 loss, and revenue of $344.44 million, above estimates and up 19.6% year over year.
• Shares opened at $17.97 and were down 0.8%; director Karen Boone sold 46,766 shares under a pre-arranged trading plan.

Sonos (NASDAQ:SONO - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

SONO has been the topic of several other reports. Rosenblatt Securities reissued a "buy" rating and issued a $21.00 target price on shares of Sonos in a research report on Thursday, July 30th. Weiss Ratings upgraded shares of Sonos from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, October 13th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $20.00.

Sonos Stock Down 0.8%

Shares of NASDAQ SONO opened at $17.97 on Friday. Sonos has a 12 month low of $12.44 and a 12 month high of $19.82. The company has a market cap of $2.13 billion, a price-to-earnings ratio of 24.96 and a beta of 1.94. The business has a fifty day simple moving average of $16.93 and a 200-day simple moving average of $15.35.

Sonos (NASDAQ:SONO - Get Free Report) last released its quarterly earnings results on Tuesday, November 10th. The company reported $0.04 earnings per share for the quarter, beating analysts' consensus estimates of ($0.18) by $0.22. The business had revenue of $344.44 million during the quarter, compared to analyst estimates of $340.33 million. Sonos had a return on equity of 21.14% and a net margin of 5.79%. Sonos's revenue for the quarter was up 19.6% on a year-over-year basis. During the same quarter last year, the company posted ($0.06) EPS. As a group, sell-side analysts expect that Sonos will post 0.33 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Karen Boone sold 46,766 shares of the stock in a transaction dated Friday, September 25th. The stock was sold at an average price of $18.13, for a total value of $847,867.58. Following the completion of the sale, the director directly owned 69,271 shares of the company's stock, valued at approximately $1,255,883.23. This represents a 40.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.25% of the company's stock.

Hedge Funds Weigh In On Sonos

Large investors have recently made changes to their positions in the business. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Sonos during the third quarter worth approximately $26,000. Fortitude Family Office LLC grew its position in Sonos by 325.3% during the third quarter. Fortitude Family Office LLC now owns 1,544 shares of the company's stock valued at $28,000 after purchasing an additional 1,181 shares in the last quarter. Fulcrum Asset Management LLP increased its stake in Sonos by 747.3% in the 3rd quarter. Fulcrum Asset Management LLP now owns 1,576 shares of the company's stock valued at $28,000 after buying an additional 1,390 shares during the period. Sterling Capital Management LLC increased its stake in Sonos by 600.2% in the 3rd quarter. Sterling Capital Management LLC now owns 3,830 shares of the company's stock valued at $69,000 after buying an additional 3,283 shares during the period. Finally, Parallel Advisors LLC increased its stake in Sonos by 1,688.7% in the 3rd quarter. Parallel Advisors LLC now owns 3,953 shares of the company's stock valued at $71,000 after buying an additional 3,732 shares during the period. Institutional investors and hedge funds own 85.82% of the company's stock.

Key Sonos News

Investors following SONO have been watching these news items:

• Positive Sentiment: Coverage says Sonos’s turnaround is lifting revenue and reports a new A$215 million share buyback, which could signal management confidence and support demand for the stock. Sonos Launches Fresh A$215m Buyback As Conrad Turnaround Lifts Revenue The company’s recent quarterly results also beat analyst estimates for EPS and revenue, with revenue up 19.6% year over year.
• Positive Sentiment: Reviews praise the Beam Ultra soundbar for combining compact size with strong sound, and describe Sonos headphones’ integration with the company’s ecosystem as a key strength. Favorable product coverage may help support demand. Sonos’s Beam Ultra Soundbar Hits a Sweet Spot Between Small Size and Big Sound The Sonos Ace Ultra are deeply integrated into the Sonos ecosystem
• Negative Sentiment: Articles highlight rare discounts on Bose speakers, underscoring promotional competition from a direct rival that could make it harder for Sonos to win customers. Bose Is Having a Rare Sale on Its Best New Sonos-Rivaling Speaker

About Sonos

Sonos, Inc. designs and sells wireless audio products and software for home entertainment. Its lineup includes wireless speakers, soundbars, subwoofers, amplifiers and related components that can be used individually or connected through the Sonos platform to play audio in multiple rooms. The company's products support music and other audio from a range of streaming services, as well as television and home theater setups. Sonos also offers software and services, including Sonos Radio, and sells products through its website and retail partners in markets around the world.

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