Sonos (NASDAQ:SONO) Downgraded by Wall Street Zen to "Buy"

Key Points

• Wall Street Zen downgraded Sonos from “strong buy” to “buy,” while the broader analyst consensus remains “hold” with an average price target of $20.
• Sonos reported stronger-than-expected quarterly results, with EPS of $0.27 versus the $0.04 consensus and revenue of $375.26 million, up 8.8% year over year.
• Shares opened at $15.83, down 1.4%, with a $1.87 billion market capitalization; institutional investors own 85.82% of the company, while a director recently sold 19,855 shares under a pre-arranged trading plan.

Sonos (NASDAQ:SONO - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

Several other analysts also recently issued reports on the company. Weiss Ratings raised Sonos from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, August 13th. Rosenblatt Securities restated a "buy" rating and set a $21.00 price objective on shares of Sonos in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $20.00.

Sonos Stock Down 1.4%

Shares of NASDAQ:SONO opened at $15.83 on Friday. The company has a market cap of $1.87 billion, a PE ratio of 35.18 and a beta of 1.95. Sonos has a fifty-two week low of $12.44 and a fifty-two week high of $19.82. The firm has a 50-day simple moving average of $14.91 and a 200 day simple moving average of $14.79.

Sonos (NASDAQ:SONO - Get Free Report) last issued 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. Sonos had a net margin of 3.82% and a return on equity of 19.10%. The firm had revenue of $375.26 million for the quarter, compared to analysts' expectations of $365.65 million. During the same quarter last year, the company posted ($0.03) earnings per share. Sonos's revenue was up 8.8% on a year-over-year basis. As a group, research analysts forecast that Sonos will post 0.69 EPS for the current fiscal year.

Insider Transactions at Sonos

In other Sonos news, Director Julius Genachowski sold 19,855 shares of the business's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $17.00, for a total transaction of $337,535.00. Following the completion of the transaction, the director directly owned 53,775 shares of the company's stock, valued at $914,175. The trade was a 26.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.25% of the stock is owned by insiders.

Institutional Investors Weigh In On Sonos

A number of hedge funds have recently made changes to their positions in the business. Hantz Financial Services Inc. boosted its position in shares of Sonos by 307.9% during the fourth 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. increased its position in Sonos by 699.6% in 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. acquired a new stake in Sonos in the 4th quarter valued at approximately $50,000. Quarry LP increased its position in Sonos by 485.8% in the 3rd quarter. Quarry LP now owns 3,251 shares of the company's stock valued at $51,000 after acquiring an additional 2,696 shares during the period. Finally, Meeder Asset Management Inc. bought a new stake in Sonos during the 2nd quarter valued at $59,000. Institutional investors own 85.82% of the company's stock.

About Sonos

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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