Sonos (NASDAQ:SONO) Shares Break Above 200 Day Moving Average - Should You Sell?

Key Points

• Sonos shares rose above their 200-day moving average of $15.19, reaching $17.94 and last trading at $17.60, signaling improving technical momentum.
• Analysts maintain a generally cautious outlook: the stock carries a consensus “Hold” rating and a $20.00 price target, despite Rosenblatt Securities reaffirming a Buy rating with a $21 target.
• Sonos exceeded quarterly expectations, reporting $0.27 EPS versus $0.04 expected and revenue of $375.26 million, up 8.8% year over year. However, insiders sold 76,621 shares worth about $1.34 million over the past three months.

Sonos, Inc. (NASDAQ:SONO - Get Free Report)'s share price passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $15.19 and traded as high as $17.94. Sonos shares last traded at $17.60, with a volume of 1,719,979 shares.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Weiss Ratings raised Sonos from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday. Rosenblatt Securities reaffirmed a "buy" rating and set a $21.00 price objective on shares of Sonos in a research report on Thursday, July 30th. Finally, Wall Street Zen downgraded Sonos from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 22nd. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $20.00.

Sonos Trading Down 0.7%

The firm has a market capitalization of $2.08 billion, a PE ratio of 39.11 and a beta of 1.88. The business's 50 day simple moving average is $16.23 and its two-hundred day simple moving average is $15.19.

Sonos (NASDAQ:SONO - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.27 earnings per share (EPS) for the quarter, topping 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 the consensus estimate of $365.65 million. During the same period last year, the business posted ($0.03) EPS. The company's revenue for the quarter was up 8.8% on a year-over-year basis. As a group, equities research analysts anticipate that Sonos, Inc. will post 0.69 earnings per share for the current year.

Insider Transactions at Sonos

In other Sonos news, Director Julius Genachowski sold 19,855 shares of the firm's stock in a transaction dated 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 directly owned 53,775 shares of the company's stock, valued at approximately $914,175. This trade represents a 26.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 46,766 shares of the company's stock in a transaction dated 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 $1,255,883.23. The trade was a 40.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 76,621 shares of company stock worth $1,339,303. 1.25% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sonos

A number of institutional investors and hedge funds have recently made changes to their positions in SONO. Fortitude Family Office LLC increased its stake in shares of Sonos by 325.3% in the 3rd quarter. Fortitude Family Office LLC now owns 1,544 shares of the company's stock worth $28,000 after purchasing an additional 1,181 shares in the last quarter. Meeder Asset Management Inc. purchased a new position in Sonos during the second quarter valued at $59,000. Integrated Wealth Concepts LLC purchased a new position in Sonos during the second quarter valued at $75,000. Leonteq Securities AG lifted its position in Sonos by 45.2% during the first quarter. Leonteq Securities AG now owns 7,690 shares of the company's stock valued at $103,000 after purchasing an additional 2,395 shares in the last quarter. Finally, Centaurus Financial Inc. purchased a new position in Sonos during the second quarter valued at $128,000. Hedge funds and other institutional investors own 85.82% of the company's stock.

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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