Sonos, Inc. (NASDAQ:SONO) Stock Has Average Price Target of $20.00

Key Points

• Analyst sentiment is neutral: Sonos has an average “Hold” rating from five brokerages, with three holds and two buys. The average 12-month price target is $20.00 versus the stock’s reported opening price of $16.93.
• Recent financial results exceeded expectations: Sonos reported quarterly earnings of $0.27 per share, well above the $0.04 consensus estimate, while revenue rose 8.8% year over year to $375.26 million.
• Institutional ownership is high, but insiders have been selling: Institutional investors own 85.82% of Sonos, including a new position by BlackRock valued at approximately $248 million. Insiders sold 76,621 shares worth about $1.34 million over the past 90 days.

Sonos, Inc. (NASDAQ:SONO - Get Free Report) has earned an average recommendation of "Hold" from the five brokerages that are presently covering the firm, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $20.00.

A number of research firms recently issued reports on SONO. Weiss Ratings raised Sonos from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, October 13th. Rosenblatt Securities reiterated a "buy" rating and issued a $21.00 price target 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

Shares of SONO stock opened at $16.93 on Tuesday. Sonos has a 1 year low of $12.44 and a 1 year high of $19.82. The business's fifty day moving average is $16.34 and its 200-day moving average is $15.28. The stock has a market cap of $2.00 billion, a PE ratio of 37.62 and a beta of 1.88.

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

Insider Activity

In related news, Director Julius Genachowski sold 19,855 shares of the business's stock in a transaction that occurred 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 in the company, valued at $914,175. The trade was a 26.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 46,766 shares of the stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $18.13, for a total transaction of $847,867.58. Following 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 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. In the last 90 days, insiders have sold 76,621 shares of company stock valued at $1,339,303. Insiders own 1.25% of the company's stock.

Institutional Trading of Sonos

A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in Sonos in the second quarter worth approximately $248,067,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of Sonos by 2.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,307,363 shares of the company's stock valued at $44,319,000 after buying an additional 90,997 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Sonos by 27.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,384,430 shares of the company's stock valued at $31,949,000 after acquiring an additional 506,566 shares during the last quarter. Renaissance Technologies LLC lifted its position in shares of 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 acquiring an additional 1,230,900 shares during the last quarter. Finally, Systematic Financial Management LP lifted its position in shares of Sonos by 10.7% during the 1st quarter. Systematic Financial Management LP now owns 1,306,859 shares of the company's stock valued at $17,512,000 after acquiring an additional 126,760 shares during the last quarter. 85.82% of the stock is currently owned by institutional investors.

Sonos Company Profile

Sonos, Inc is an audio technology company that develops and sells connected sound products and software for homes and other personal listening environments. Its products are designed to work together over wireless networks, allowing users to stream and control music, podcasts, television audio and other content through the Sonos app and compatible services.

The company's product portfolio includes wireless home speakers, portable speakers, soundbars, home theater components, subwoofers and headphones.

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