SCS Capital Management LLC Takes Position in Sonos, Inc. $SONO

Key Points

• SCS Capital Management LLC purchased 115,183 shares of Sonos, Inc., valued at approximately $1.23 million, increasing its stake to 0.10% of the company.
• Sonos reported a net loss of $0.03 earnings per share for the last quarter, which missed analysts' estimates, despite revenue exceeding projections.
• Institutional investors and hedge funds now own about 85.82% of Sonos, indicating strong interest from major market players.

SCS Capital Management LLC acquired a new position in shares of Sonos, Inc. (NASDAQ:SONO - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 115,183 shares of the company's stock, valued at approximately $1,229,000. SCS Capital Management LLC owned approximately 0.10% of Sonos at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in the business. Coliseum Capital Management LLC grew its holdings in Sonos by 9.7% during the 1st quarter. Coliseum Capital Management LLC now owns 11,775,582 shares of the company's stock worth $125,645,000 after acquiring an additional 1,041,569 shares during the last quarter. Trigran Investments Inc. lifted its position 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 valued at $56,006,000 after acquiring an additional 1,017,223 shares during the period. Wellington Management Group LLP raised its holdings in shares of Sonos by 10.6% in the fourth quarter. Wellington Management Group LLP now owns 3,654,074 shares of the company's stock valued at $54,957,000 after purchasing an additional 351,057 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in shares of Sonos by 3.0% in the first quarter. Jacobs Levy Equity Management Inc. now owns 3,283,633 shares of the company's stock valued at $35,036,000 after purchasing an additional 96,111 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in Sonos by 2.4% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,738,910 shares of the company's stock valued at $18,554,000 after buying an additional 40,539 shares during the period. 85.82% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

SONO has been the subject of several recent research reports. Wall Street Zen upgraded shares of Sonos from a "sell" rating to a "hold" rating in a research note on Saturday, August 2nd. Rosenblatt Securities reiterated a "buy" rating and issued a $17.00 target price on shares of Sonos in a research note on Wednesday, August 20th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $13.67.

Sonos Stock Performance

Shares of SONO traded down $0.19 during mid-day trading on Tuesday, hitting $15.38. 488,405 shares of the company traded hands, compared to its average volume of 1,996,843. The stock has a 50-day moving average price of $12.42 and a two-hundred day moving average price of $11.00. Sonos, Inc. has a 1 year low of $7.63 and a 1 year high of $15.89. The stock has a market cap of $1.86 billion, a price-to-earnings ratio of -23.65 and a beta of 2.17.

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

Insider Activity at Sonos

In other Sonos news, major shareholder Coliseum Capital Management, L purchased 55,000 shares of Sonos stock in a transaction that occurred on Friday, August 8th. The shares were bought at an average price of $11.21 per share, for a total transaction of $616,550.00. Following the completion of the transaction, the insider owned 14,930,280 shares of the company's stock, valued at approximately $167,368,438.80. This trade represents a 0.37% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Saori Casey acquired 22,727 shares of the company's stock in a transaction on Friday, August 8th. The shares were purchased at an average cost of $10.94 per share, with a total value of $248,633.38. Following the completion of the purchase, the chief financial officer directly owned 107,000 shares of the company's stock, valued at $1,170,580. This trade represents a 26.97% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders have bought 2,298,481 shares of company stock worth $25,132,123. 1.80% of the stock is currently owned by corporate insiders.

Sonos Profile

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.