Sonos (NASDAQ:SONO) Given Buy Rating at Rosenblatt Securities

Key Points

• Rosenblatt Securities reissued a "buy" rating on Sonos with a $21.00 price target, implying about a 41% upside from the prior close.
• Sonos reported better‑than‑expected Q2 results (revenue beat and a smaller loss) but warned of a roughly 400‑basis‑point memory cost headwind that could pressure gross margins and near‑term profitability.
• Analyst coverage is mixed: the consensus is an overall "Hold" with an average target of $20.00, reflecting two Buy, two Hold and one Sell ratings across recent reports.

Sonos (NASDAQ:SONO - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Rosenblatt Securities in a research note issued on Tuesday,Benzinga reports. They currently have a $21.00 price target on the stock. Rosenblatt Securities' price objective would indicate a potential upside of 41.22% from the stock's previous close.

SONO has been the topic of several other reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Sonos in a research report on Tuesday, April 21st. Morgan Stanley set a $18.00 price objective on shares of Sonos in a research report on Wednesday, February 4th. Wall Street Zen cut shares of Sonos from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Zacks Research cut shares of Sonos from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 6th. Finally, Jefferies Financial Group lifted their price objective on shares of Sonos from $19.00 to $21.00 and gave the stock a "buy" rating in a research report on Monday, January 5th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $20.00.

Sonos Stock Performance

NASDAQ SONO opened at $14.87 on Tuesday. Sonos has a twelve month low of $8.73 and a twelve month high of $19.82. The stock has a market cap of $1.80 billion, a price-to-earnings ratio of -87.47 and a beta of 1.94. The firm's 50 day moving average price is $14.06 and its two-hundred day moving average price is $15.92.

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

Insider Activity at Sonos

In related news, major shareholder Coliseum Capital Management, L purchased 494,719 shares of the stock in a transaction dated Wednesday, February 4th. The shares were acquired at an average cost of $15.50 per share, for a total transaction of $7,668,144.50. Following the acquisition, the insider directly owned 15,424,999 shares in the company, valued at approximately $239,087,484.50. The trade was a 3.31% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last 90 days, insiders have acquired 3,140,482 shares of company stock worth $46,905,007. Insiders own 1.25% of the company's stock.

Hedge Funds Weigh In On Sonos

Several institutional investors and hedge funds have recently modified their holdings of SONO. Arrowstreet Capital Limited Partnership grew its holdings in shares of Sonos by 626.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,663,480 shares of the company's stock valued at $42,083,000 after acquiring an additional 2,296,996 shares in the last quarter. Cubist Systematic Strategies LLC grew its holdings in shares of Sonos by 250.8% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 1,393,706 shares of the company's stock valued at $15,066,000 after acquiring an additional 996,425 shares in the last quarter. OP Asset Management Ltd purchased a new position in shares of Sonos during the 1st quarter valued at $10,414,000. Vanguard Group Inc. grew its holdings in shares of Sonos by 5.9% during the 3rd quarter. Vanguard Group Inc. now owns 13,730,353 shares of the company's stock valued at $216,940,000 after acquiring an additional 768,776 shares in the last quarter. Finally, AQR Capital Management LLC boosted its holdings in Sonos by 1,472.4% in the second quarter. AQR Capital Management LLC now owns 804,583 shares of the company's stock worth $8,698,000 after purchasing an additional 753,414 shares in the last quarter. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

Sonos News Summary

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Q2 results beat: Sonos posted ($0.02) EPS vs. consensus ($0.04) and revenue of $281.5M vs. est. ~$267.7M; revenue grew ~8.4% year-over-year and the EPS loss narrowed materially from a year ago — a clear near-term operational improvement. Read More.
• Positive Sentiment: Beats confirmed by multiple outlets: Zacks and MarketBeat highlight the beat on revenue and the smaller-than-expected loss, reinforcing that results surprised to the upside. That supports momentum for the stock. Read More.
• Positive Sentiment: Insider bullish activity: Recent reporting shows Sonos insiders placed bullish bets worth roughly $2.78M, which can be interpreted by investors as management confidence in the company’s prospects. Read More.
• Neutral Sentiment: Management narrative and investor materials: CEO Tom Conrad called the period “an important turning point,” pointing to better products, software and marketing; the earnings slide deck and transcript add context but require execution over coming quarters to sustain the beat. Read More. · Read More.
• Neutral Sentiment: Third‑party coverage and snapshots: Several outlets summarized the quarter and outlook; these amplify the beats but add little new near-term catalyst beyond formal guidance and margin commentary. Read More.
• Negative Sentiment: Q3 guidance & cost headwind: Sonos guided Q3 revenue $355M–$375M (consensus ~$363.1M) and warned of roughly a 400‑basis‑point memory cost headwind that will pressure gross margins and could constrain near‑term profitability — this is the main risk capping upside. Read More.
• Negative Sentiment: Mixed signals on margin recovery: While top‑line beat is encouraging, the margin hit from component costs and the company’s ongoing path to sustained profitability mean investors will watch gross margin trends and forward EPS guidance closely in coming quarters. Read More.

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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