EntryPoint Capital LLC Trims Stake in Sonos, Inc. $SONO

Key Points

• EntryPoint Capital LLC significantly reduced its stake in Sonos by 62.6% during the 1st quarter, holding just 13,708 shares valued at approximately $146,000 after selling 22,993 shares.
• Sonos reported a net loss of ($0.03) earnings per share for the last quarter, which was below analysts' expectations, while revenue declined by 13.2% year-over-year.
• Insider trading noted that Director Julius Genachowski and CEO Thomas Conrad each increased their stakes in Sonos, indicating confidence in the company despite recent performance challenges.

EntryPoint Capital LLC reduced its stake in shares of Sonos, Inc. (NASDAQ:SONO - Free Report) by 62.6% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 13,708 shares of the company's stock after selling 22,993 shares during the quarter. EntryPoint Capital LLC's holdings in Sonos were worth $146,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of SONO. Coliseum Capital Management LLC increased its position in shares of Sonos by 50.3% in the fourth quarter. Coliseum Capital Management LLC now owns 10,734,013 shares of the company's stock valued at $161,440,000 after buying an additional 3,590,782 shares in the last quarter. Trigran Investments Inc. raised its stake in shares of Sonos by 24.0% during the 1st quarter. Trigran Investments Inc. now owns 5,248,935 shares of the company's stock worth $56,006,000 after buying an additional 1,017,223 shares during the period. Wellington Management Group LLP raised its stake in shares of Sonos by 10.6% during the 4th quarter. Wellington Management Group LLP now owns 3,654,074 shares of the company's stock worth $54,957,000 after buying an additional 351,057 shares during the period. Jacobs Levy Equity Management Inc. raised its stake in shares of Sonos by 14.7% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 3,187,522 shares of the company's stock worth $47,940,000 after buying an additional 408,479 shares during the period. Finally, Dimensional Fund Advisors LP raised its stake in shares of Sonos by 5.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,687,007 shares of the company's stock worth $40,413,000 after buying an additional 148,608 shares during the period. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

Sonos Trading Up 3.0%

NASDAQ SONO opened at $13.26 on Monday. The stock has a market cap of $1.60 billion, a PE ratio of -20.40 and a beta of 2.04. The stock has a fifty day simple moving average of $11.20 and a 200-day simple moving average of $10.86. Sonos, Inc. has a twelve month low of $7.63 and a twelve month high of $15.89.

Sonos (NASDAQ:SONO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.01). The company had revenue of $344.76 million during the quarter, compared to analyst estimates of $324.66 million. Sonos had a negative net margin of 5.41% and a negative return on equity of 18.19%. Sonos's revenue for the quarter was down 13.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.03 EPS. Research analysts predict that Sonos, Inc. will post -0.37 EPS for the current year.

Insider Buying and Selling

In related news, Director Julius Genachowski purchased 22,850 shares of Sonos stock in a transaction on Friday, August 8th. The shares were bought at an average price of $10.95 per share, with a total value of $250,207.50. Following the transaction, the director directly owned 124,396 shares of the company's stock, valued at approximately $1,362,136.20. This trade represents a 22.50% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Thomas Conrad purchased 92,300 shares of Sonos stock in a transaction on Friday, August 8th. The stock was bought at an average cost of $11.10 per share, for a total transaction of $1,024,530.00. Following the transaction, the chief executive officer directly owned 242,778 shares in the company, valued at $2,694,835.80. This represents a 61.34% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders purchased 2,950,069 shares of company stock worth $31,713,016 over the last 90 days. 1.80% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on SONO. Rosenblatt Securities reaffirmed a "buy" rating and set a $17.00 target price on shares of Sonos in a research note on Wednesday, August 20th. Wall Street Zen raised Sonos from a "sell" rating to a "hold" rating in a research note on Saturday, August 2nd. Two research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $13.67.

About Sonos

Sonos, Inc, together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website.

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