Two Seas Capital LP Makes New $9.62 Million Investment in Sonos, Inc. $SONO

Key Points

• Two Seas Capital initiated a $9.62 million position in Sonos, purchasing 710,612 shares, or approximately 0.60% of the company. Institutional investors collectively own 85.82% of Sonos.
• Sonos reported quarterly EPS of $0.27, beating the $0.04 analyst consensus, while revenue rose 8.8% year over year to $375.26 million.
• Analysts maintain a consensus “Hold” rating with a $20.00 target price, compared with the stock’s recent opening price of $15.83; one director also sold $337,535 worth of shares under a 10b5-1 plan.

Two Seas Capital LP bought a new position in Sonos, Inc. (NASDAQ:SONO - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 710,612 shares of the company's stock, valued at approximately $9,615,000. Two Seas Capital LP owned about 0.60% of Sonos at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Sonos during the second quarter valued at $248,067,000. Vanguard Group Inc. increased its holdings in shares of Sonos by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 13,935,287 shares of the company's stock worth $244,704,000 after buying an additional 204,934 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Sonos by 2.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,307,363 shares of the company's stock worth $44,319,000 after buying an additional 90,997 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its position in shares of Sonos by 2.7% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 3,281,869 shares of the company's stock valued at $57,630,000 after buying an additional 85,468 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of Sonos by 0.7% in the 4th quarter. Geode Capital Management LLC now owns 2,908,435 shares of the company's stock valued at $51,082,000 after acquiring an additional 20,602 shares during the last quarter. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

Sonos Price Performance

Shares of NASDAQ SONO opened at $15.83 on Friday. The company has a market cap of $1.87 billion, a P/E ratio of 35.18 and a beta of 1.95. Sonos, Inc. has a 1 year low of $12.44 and a 1 year high of $19.82. The firm has a 50-day simple moving average of $14.91 and a two-hundred day simple moving average of $14.79.

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

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Rosenblatt Securities reissued a "buy" rating and set a $21.00 price objective on shares of Sonos in a research note on Thursday, July 30th. Weiss Ratings upgraded Sonos from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, August 13th. Finally, Wall Street Zen downgraded Sonos from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $20.00.

Insider Transactions at Sonos

In other Sonos news, Director Julius Genachowski sold 19,855 shares of the company's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $17.00, for a total value of $337,535.00. Following the transaction, the director owned 53,775 shares of the company's stock, valued at $914,175. This represents a 26.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.25% of the stock is currently owned by insiders.

Sonos Profile

Sonos, Inc is a consumer electronics company specializing in wireless home audio systems. The company's core business revolves around designing, developing and manufacturing smart speakers and soundbars that deliver high-fidelity audio and seamless multi-room listening experiences. Sonos products connect via Wi-Fi or Bluetooth and integrate with popular streaming services, enabling users to control music and other audio content through a dedicated mobile app, voice assistants or traditional controls.

Sonos offers a diversified product lineup that includes compact speakers such as Sonos One and Sonos Roam, premium models like Sonos Five and Sonos Move, home theater solutions including Sonos Beam and Sonos Arc, as well as accessories such as the Sonos Sub and Sonos Amp.

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