Sonos (NASDAQ:SONO) Stock Price Down 4.6% on Insider Selling

Key Points

• Sonos shares fell 4.6% to $15.42 after Director Karen Boone sold 10,000 shares worth $153,900 under a pre-arranged Rule 10b5-1 trading plan; trading volume was also 80% below average.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $20.00 price target. Rosenblatt Securities maintained a Buy rating with a $21 target.
• Sonos reported stronger-than-expected quarterly results, posting $0.27 EPS versus a $0.04 estimate and revenue of $375.26 million, up 8.8% year over year; institutional investors own 85.82% of the stock.

Sonos, Inc. (NASDAQ:SONO - Get Free Report)'s share price traded down 4.6% during trading on Friday following insider selling activity. The company traded as low as $15.35 and last traded at $15.42. Approximately 346,878 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 1,738,685 shares. The stock had previously closed at $16.16.

Specifically, Director Karen Boone sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $15.39, for a total value of $153,900.00. Following the completion of the transaction, the director owned 84,271 shares in the company, valued at $1,296,930.69. This trade represents a 10.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

SONO has been the topic of a number of research reports. Rosenblatt Securities reissued a "buy" rating and set a $21.00 target price on shares of Sonos in a report on Thursday, July 30th. Weiss Ratings raised shares of Sonos from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Finally, Wall Street Zen downgraded Sonos from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 22nd. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $20.00.

Sonos Stock Performance

The stock's 50 day moving average price is $15.10 and its 200 day moving average price is $14.73. The company has a market capitalization of $1.83 billion, a P/E ratio of 34.28 and a beta of 1.93.

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

Institutional Investors Weigh In On Sonos

A number of hedge funds have recently added to or reduced their stakes in the business. Hantz Financial Services Inc. grew its position in shares of Sonos by 307.9% during the 4th quarter. Hantz Financial Services Inc. now owns 1,762 shares of the company's stock worth $31,000 after buying an additional 1,330 shares during the period. Northwestern Mutual Wealth Management Co. lifted its position in shares of Sonos by 699.6% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,055 shares of the company's stock valued at $36,000 after acquiring an additional 1,798 shares during the period. Daiwa Securities Group Inc. bought a new position in Sonos during the fourth quarter worth $50,000. Quarry LP boosted its stake in Sonos by 485.8% during the third quarter. Quarry LP now owns 3,251 shares of the company's stock worth $51,000 after acquiring an additional 2,696 shares in the last quarter. Finally, Meeder Asset Management Inc. acquired a new stake in Sonos in the second quarter worth $59,000. 85.82% of the stock is currently owned by institutional investors.

Sonos Company 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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