Sonos (NASDAQ:SONO) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Sonos to “strong-buy” from “buy,” while the broader analyst consensus remains “hold,” with an average price target of $20.00.
• Sonos shares opened at $14.66, with a $1.73 billion market capitalization and a 52-week trading range of $10.11 to $19.82. Institutional investors own approximately 85.82% of the company.
• Director Julius Genachowski sold 19,855 shares for about $337,535 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by roughly 27%; insiders collectively own 1.25% of Sonos.

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

Several other research analysts have also recently commented on SONO. Weiss Ratings upgraded shares of Sonos from a "sell (d)" rating to a "hold (c-)" rating in a report on Thursday. Zacks Research cut shares of Sonos from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 6th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $21.00 price objective on shares of Sonos in a research report on Thursday. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $20.00.

Sonos Stock Performance

SONO stock opened at $14.66 on Friday. The company's 50 day moving average price is $14.85 and its 200 day moving average price is $14.75. The firm has a market capitalization of $1.73 billion, a price-to-earnings ratio of 32.58 and a beta of 1.96. Sonos has a fifty-two week low of $10.11 and a fifty-two week high of $19.82.

Insider Buying and Selling at Sonos

In related news, Director Julius Genachowski sold 19,855 shares of the business's stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $17.00, for a total transaction of $337,535.00. Following the completion of the sale, the director owned 53,775 shares in the company, valued at $914,175. The trade was a 26.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.25% of the company's stock.

Institutional Trading of Sonos

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pacer Advisors Inc. acquired a new position in shares of Sonos in the 1st quarter valued at $4,866,000. Ritter Alpha LP purchased a new position in shares of Sonos in the 1st quarter valued at $146,000. Bank of America Corp DE raised its stake in Sonos by 43.7% during the 1st quarter. Bank of America Corp DE now owns 1,187,427 shares of the company's stock worth $15,912,000 after acquiring an additional 360,874 shares in the last quarter. Amundi lifted its position in Sonos by 55.4% in the first quarter. Amundi now owns 34,704 shares of the company's stock valued at $465,000 after acquiring an additional 12,369 shares during the last quarter. Finally, California State Teachers Retirement System boosted its stake in Sonos by 29.9% in the first quarter. California State Teachers Retirement System now owns 136,940 shares of the company's stock valued at $1,835,000 after acquiring an additional 31,557 shares in the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

More Sonos News

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Sonos reported fiscal Q3 adjusted earnings of $0.27 per share, above the $0.24 consensus estimate. Revenue increased 8.8% year over year to $375.3 million, exceeding expectations of $365.7 million, supported by broad-based speaker demand, international growth and cost controls. Sonos Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Fourth-quarter revenue guidance of $325 million to $355 million was above analyst expectations of approximately $305 million. Sonos also reiterated full-year revenue guidance of $1.5 billion to $1.6 billion, while its buyback program provides additional potential support for the stock. Sonos Q4 Revenue Outlook
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and $21 price target, implying substantial upside from recent trading levels. The target reflects confidence in Sonos’ longer-term growth prospects despite near-term cost concerns. Rosenblatt Rating Update
• Neutral Sentiment: Sonos is planning a September product event that could introduce new hardware or artificial-intelligence features. It may become a future catalyst, but the event has no immediate earnings impact. Sonos September Product Event
• Neutral Sentiment: Promotional pricing on the flagship Arc Ultra soundbar may support short-term product demand, although discounts can also limit average selling prices. Sonos Arc Ultra Deal
• Negative Sentiment: Despite the quarterly beat, Sonos shares reportedly fell sharply as investors reacted to rising memory costs. The expense pressure could reduce fourth-quarter margins and offset the favorable revenue guidance. Sonos Shares After Q3 Results
• Negative Sentiment: Director Julius Genachowski sold 19,855 shares for approximately $337,535 under a pre-arranged Rule 10b5-1 plan. Although scheduled in advance, the sale reduced his holdings by about 27% and may weigh modestly on sentiment.

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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