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

Key Points

• Wall Street Zen downgraded Sonos from a strong-buy to a buy; across analysts there are two Buys, two Holds and one Sell, leaving an average rating of Hold and an average target price of $20.00.
• Sonos reported a quarterly beat (EPS $0.93 vs. $0.85; revenue $545.66M vs. $536.93M) but still shows a negative net margin (-1.22%) and trades around $14.84 within a 52-week range of $8.73–$19.82 with a $1.79B market cap.
• Major shareholder Coliseum Capital bought 494,719 shares at about $15.50, insiders purchased 3.14M shares in the past three months, and institutional investors own roughly 85.8% of the stock.

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

Other equities analysts have also recently issued reports about the company. Morgan Stanley set a $18.00 target price on Sonos in a research report on Wednesday, February 4th. Rosenblatt Securities restated a "buy" rating and set a $21.00 target price on shares of Sonos in a research report on Monday, February 2nd. Zacks Research cut Sonos from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Sonos in a report on Tuesday, April 21st. Finally, Jefferies Financial Group upped their price objective on Sonos from $19.00 to $21.00 and gave the stock a "buy" rating in a report on Monday, January 5th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Sonos has an average rating of "Hold" and an average target price of $20.00.

Sonos Stock Up 0.1%

Sonos stock opened at $14.84 on Friday. Sonos has a 52 week low of $8.73 and a 52 week high of $19.82. The business has a 50-day simple moving average of $14.06 and a 200 day simple moving average of $15.93. The stock has a market cap of $1.79 billion, a price-to-earnings ratio of -87.29 and a beta of 1.94.

Sonos (NASDAQ:SONO - Get Free Report) last posted its earnings results on Tuesday, February 3rd. The company reported $0.93 EPS for the quarter, topping the consensus estimate of $0.85 by $0.08. Sonos had a positive return on equity of 0.82% and a negative net margin of 1.22%.The business had revenue of $545.66 million during the quarter, compared to analysts' expectations of $536.93 million. During the same period in the previous year, the business earned $0.64 earnings per share. The firm's revenue was down .9% on a year-over-year basis. On average, research analysts anticipate that Sonos will post 0.58 earnings per share for the current year.

Insider Activity

In other news, major shareholder Coliseum Capital Management, L acquired 494,719 shares of the business's stock in a transaction dated Wednesday, February 4th. The stock was purchased at an average cost of $15.50 per share, for a total transaction of $7,668,144.50. Following the acquisition, the insider owned 15,424,999 shares of the company's stock, valued at $239,087,484.50. This trade represents a 3.31% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In the last three months, insiders bought 3,140,482 shares of company stock valued at $46,905,007. 1.25% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sonos

Hedge funds and other institutional investors have recently modified their holdings of the company. Hantz Financial Services Inc. boosted its holdings in shares of Sonos by 307.9% in the 4th quarter. Hantz Financial Services Inc. now owns 1,762 shares of the company's stock worth $31,000 after purchasing an additional 1,330 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Sonos by 699.6% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,055 shares of the company's stock worth $36,000 after purchasing an additional 1,798 shares in the last quarter. Daiwa Securities Group Inc. bought a new stake in shares of Sonos in the 4th quarter valued at about $50,000. Quarry LP lifted its stake in shares of 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 last quarter. Finally, Kemnay Advisory Services Inc. bought a new stake in shares of Sonos in the 4th quarter valued at about $64,000. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

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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