Sonos (NASDAQ:SONO) Shares Cross Above 50 Day Moving Average - Time to Sell?

Key Points

• Sonos shares rose 3.7% and moved above their 50-day moving average of $16.74, trading as high as $17.05 before last changing hands at $17.01.
• Analyst sentiment is Moderate Buy, with a consensus price target of $20; ratings are split between two Buy and two Hold recommendations.
• Director Karen Boone sold 46,766 shares under a pre-arranged trading plan, reducing her position by 40.3%; institutional investors and hedge funds own 85.82% of the stock.

Sonos, Inc. (NASDAQ:SONO - Get Free Report)'s stock price passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $16.74 and traded as high as $17.05. Sonos shares last traded at $17.01, with a volume of 1,473,324 shares trading hands.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on SONO shares. Weiss Ratings upgraded shares of Sonos from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, October 13th. Wall Street Zen downgraded shares of Sonos from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 22nd. Finally, Rosenblatt Securities restated a "buy" rating and issued a $21.00 price objective on shares of Sonos in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Sonos has an average rating of "Moderate Buy" and a consensus price target of $20.00.

Sonos Trading Up 3.7%

The stock's 50 day moving average is $16.74 and its 200 day moving average is $15.29. The stock has a market capitalization of $2.01 billion, a price-to-earnings ratio of 37.80 and a beta of 1.94.

Insiders Place Their Bets

In other Sonos news, 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 value of $847,867.58. Following the transaction, the director directly owned 69,271 shares in the company, valued at approximately $1,255,883.23. This represents a 40.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.25% of the company's stock.

Hedge Funds Weigh In On Sonos

A number of institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Sonos during the second quarter worth approximately $248,067,000. Arrowstreet Capital Limited Partnership raised its holdings in Sonos by 2.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,307,363 shares of the company's stock valued at $44,319,000 after acquiring an additional 90,997 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Sonos by 27.0% in 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 stake 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 worth $22,867,000 after purchasing an additional 1,230,900 shares during the period. Finally, Systematic Financial Management LP lifted its stake 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 worth $17,512,000 after purchasing an additional 126,760 shares during the period. Institutional investors and hedge funds own 85.82% of the company's stock.

About Sonos

Sonos, Inc designs and sells wireless audio products and software for home entertainment. Its lineup includes wireless speakers, soundbars, subwoofers, amplifiers and related components that can be used individually or connected through the Sonos platform to play audio in multiple rooms.

The company's products support music and other audio from a range of streaming services, as well as television and home theater setups. Sonos also offers software and services, including Sonos Radio, and sells products through its website and retail partners in markets around the world.

Founded in 2002 and headquartered in Santa Barbara, California, Sonos helped popularize app-controlled, multiroom wireless audio systems.

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