Sonos (NASDAQ:SONO) Stock Price Crosses Below 50 Day Moving Average - What's Next?

Key Points

• Sonos shares fell 7.4%, trading as low as $15.98 and below the 50-day moving average of $16.63, though they remained above the 200-day average of $15.28.
• Analysts maintain a consensus “Hold” rating with a $20.00 target price; two rate the stock a Buy and three rate it a Hold.
• Sonos exceeded quarterly expectations, reporting $0.27 EPS versus the $0.04 consensus and $375.26 million in revenue, up 8.8% year over year. Institutional investors own 85.82% of the company, while an insider sold 46,766 shares under a pre-arranged trading plan.

Shares of Sonos, Inc. (NASDAQ:SONO - Get Free Report) passed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $16.63 and traded as low as $15.98. Sonos shares last traded at $16.17, with a volume of 1,533,576 shares changing hands.

Wall Street Analysts Forecast Growth

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

Sonos Trading Down 7.4%

The company's fifty day moving average price is $16.63 and its two-hundred day moving average price is $15.28. The firm has a market cap of $1.91 billion, a P/E ratio of 35.93 and a beta of 1.88.

Sonos (NASDAQ:SONO - Get Free Report) last announced its 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. The business had revenue of $375.26 million during the quarter, compared to analysts' expectations of $365.65 million. Sonos had a net margin of 3.82% and a return on equity of 19.10%. The firm's revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter last year, the company posted ($0.03) EPS. On average, analysts predict that Sonos, Inc. will post 0.69 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Karen Boone sold 46,766 shares of Sonos stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $18.13, for a total value of $847,867.58. Following the completion of the transaction, the director owned 69,271 shares in the company, valued at approximately $1,255,883.23. The trade was a 40.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.25% of the company's stock.

Hedge Funds Weigh In On Sonos

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in Sonos in the 2nd quarter valued at $248,067,000. Arrowstreet Capital Limited Partnership increased its stake 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 valued at $44,319,000 after buying an additional 90,997 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of 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 buying an additional 506,566 shares during the period. Renaissance Technologies LLC increased its stake in shares of Sonos by 258.8% in the 1st quarter. Renaissance Technologies LLC now owns 1,706,501 shares of the company's stock valued at $22,867,000 after buying an additional 1,230,900 shares during the period. Finally, Systematic Financial Management LP raised its position in shares of Sonos by 10.7% during the first quarter. Systematic Financial Management LP now owns 1,306,859 shares of the company's stock worth $17,512,000 after acquiring an additional 126,760 shares during the last quarter. Institutional investors own 85.82% of the company's stock.

Sonos Company Profile

Sonos, Inc develops and sells connected audio products and software for the home. Its offerings are designed to work together over wireless networks, allowing users to play music and other audio in individual rooms or across multiple rooms through the Sonos app and compatible streaming services.

The company's product portfolio includes wireless home speakers, portable speakers, soundbars, subwoofers and other home-theater components. Sonos also offers headphones, including the Sonos Ace, as well as software features such as voice control, multiroom audio management and integration with third-party music and media platforms.

Founded in 2002 and headquartered in Santa Barbara, California, Sonos sells its products through its website, company-operated stores and third-party retailers.

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