Sonos, Inc. (NASDAQ:SONO) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analyst sentiment is neutral: Sonos has a consensus “Hold” rating, with three holds and two buys among five covering brokerages. The average 12-month price target is $20.00, versus a reported opening price of $17.84.
• Recent results exceeded expectations: Sonos reported quarterly EPS of $0.27, beating the $0.04 consensus estimate, while revenue reached $375.26 million and rose 8.8% year over year.
• Institutional ownership is substantial: Institutional investors own 85.82% of Sonos, with BlackRock establishing an approximately $248.1 million position and Renaissance Technologies increasing its holdings by 258.8%. Two directors also sold shares under pre-arranged trading plans.

Shares of Sonos, Inc. (NASDAQ:SONO - Get Free Report) have been assigned a consensus rating of "Hold" from the five brokerages that are presently covering the company, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $20.00.

A number of equities analysts have commented on SONO shares. Weiss Ratings raised shares of Sonos from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Rosenblatt Securities restated a "buy" rating and set a $21.00 target price on shares of Sonos in a research report on Thursday, July 30th. Finally, Wall Street Zen downgraded shares of Sonos from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 22nd.

Sonos Stock Performance

NASDAQ SONO opened at $17.84 on Friday. The company has a market capitalization of $2.11 billion, a P/E ratio of 39.65 and a beta of 1.93. Sonos has a one year low of $12.44 and a one year high of $19.82. The stock has a 50 day moving average price of $15.62 and a 200-day moving average price of $14.79.

Sonos (NASDAQ:SONO - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.04 by $0.23. The firm had revenue of $375.26 million during the quarter, compared to analyst estimates of $365.65 million. Sonos had a net margin of 3.82% and a return on equity of 19.10%. Sonos's revenue for the quarter was up 8.8% compared to the same quarter last year. During the same period last year, the firm posted ($0.03) earnings per share. As a group, equities analysts predict that Sonos will post 0.69 EPS for the current fiscal year.

Insider Activity at Sonos

In other Sonos news, Director Julius Genachowski sold 19,855 shares of the company's stock in a transaction that occurred on Wednesday, July 29th. The stock was 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 in the company, valued at $914,175. This represents a 26.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $15.39, for a total value of $153,900.00. Following the completion of the sale, the director directly owned 84,271 shares of the company's stock, valued at $1,296,930.69. The trade was a 10.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.25% of the company's stock.

Institutional Trading of Sonos

A number of institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of Sonos in the 2nd quarter worth about $248,067,000. Renaissance Technologies LLC grew its holdings in Sonos by 258.8% during the 1st quarter. Renaissance Technologies LLC now owns 1,706,501 shares of the company's stock valued at $22,867,000 after purchasing an additional 1,230,900 shares during the last quarter. Bank of America Corp DE bought a new position in Sonos during the 2nd quarter valued at about $13,102,000. OP Asset Management Ltd bought a new position in Sonos during the 1st quarter valued at about $10,414,000. Finally, Two Seas Capital LP purchased a new stake in Sonos in the 2nd quarter worth about $9,615,000. 85.82% of the stock is currently owned by institutional investors.

Sonos Company Profile

Sonos, Inc NASDAQ: SONO develops and sells wireless audio products and related software for residential and commercial environments. Its product portfolio includes wireless speakers, portable speakers, soundbars, subwoofers, headphones and components designed for home theater and whole-home audio systems.

The company's products are controlled through the Sonos app and can be connected across rooms, with support for music-streaming services, voice control and other smart-home features.

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