Sonos (NASDAQ:SONO) Price Target Raised to $17.00 at Rosenblatt Securities

Key Points

• Rosenblatt Securities has raised its price target for Sonos (NASDAQ:SONO) from $15.00 to $17.00, indicating a potential upside of 53.99% from the current price, while maintaining a "buy" rating on the stock.
• Sonos reported a revenue of $344.76 million in its latest earnings but missed earnings per share (EPS) estimates, resulting in a negative EPS of ($0.03).
• Major shareholder Coliseum Capital Management purchased 675,000 shares of Sonos at an average price of $11.25, increasing their ownership stake significantly.

Sonos (NASDAQ:SONO - Get Free Report) had its price target hoisted by research analysts at Rosenblatt Securities from $15.00 to $17.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Rosenblatt Securities' price target would suggest a potential upside of 50.04% from the company's current price.

Separately, Wall Street Zen raised shares of Sonos from a "sell" rating to a "hold" rating in a research note on Saturday, August 2nd.

Sonos Stock Performance

Shares of NASDAQ:SONO traded up $0.36 during midday trading on Thursday, hitting $11.33. The company's stock had a trading volume of 2,066,005 shares, compared to its average volume of 2,108,532. The business's 50 day simple moving average is $10.64 and its 200 day simple moving average is $10.96. The company has a market cap of $1.37 billion, a P/E ratio of -17.43 and a beta of 2.04. Sonos has a 12-month low of $7.63 and a 12-month high of $15.89.

Sonos (NASDAQ:SONO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of ($0.02) by ($0.01). The business had revenue of $344.76 million during the quarter, compared to analysts' expectations of $324.66 million. Sonos had a negative return on equity of 18.19% and a negative net margin of 5.41%. The business's quarterly revenue was down 13.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.03 earnings per share. On average, sell-side analysts predict that Sonos will post -0.37 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, major shareholder Coliseum Capital Management, L bought 675,000 shares of Sonos stock in a transaction on Tuesday, July 29th. The shares were bought at an average cost of $11.25 per share, with a total value of $7,593,750.00. Following the completion of the purchase, the insider directly owned 14,505,191 shares of the company's stock, valued at approximately $163,183,398.75. This trade represents a 4.88% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders have bought 2,629,786 shares of company stock worth $28,221,317 over the last quarter. 1.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Sonos

A number of institutional investors have recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of Sonos in the 4th quarter valued at approximately $4,322,000. Wells Fargo & Company MN raised its stake in shares of Sonos by 26.2% in the 4th quarter. Wells Fargo & Company MN now owns 89,595 shares of the company's stock valued at $1,348,000 after acquiring an additional 18,592 shares during the period. Bank of Montreal Can raised its stake in shares of Sonos by 19.8% in the 4th quarter. Bank of Montreal Can now owns 49,212 shares of the company's stock valued at $740,000 after acquiring an additional 8,121 shares during the period. Legal & General Group Plc raised its stake in shares of Sonos by 4.3% in the 4th quarter. Legal & General Group Plc now owns 359,565 shares of the company's stock valued at $5,408,000 after acquiring an additional 14,743 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in shares of Sonos in the 4th quarter valued at approximately $1,676,000. 85.82% of the stock is owned by hedge funds and other institutional investors.

About Sonos

Sonos, Inc, together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website.