Sonos (NASDAQ:SONO) Stock Price Crosses Above 200-Day Moving Average - What's Next?

Key Points

• Sonos, Inc. shares rose above its 200-day moving average during recent trading, with the stock currently at $16.80, compared to a 200-day average of $11.32.
• Wall Street analysts have mixed ratings for Sonos, with a consensus rating of "Buy" and a target price of $15.00, while revenue for the latest quarter fell by 13.2% year-over-year.
• Insiders, including the CEO and a major shareholder, have shown confidence by acquiring large amounts of stock at around $11 per share, increasing their positions significantly.

Sonos, Inc. (NASDAQ:SONO - Get Free Report) shares passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $11.32 and traded as high as $16.82. Sonos shares last traded at $16.80, with a volume of 1,561,562 shares traded.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on SONO. Wall Street Zen upgraded shares of Sonos from a "sell" rating to a "hold" rating in a research note on Saturday, August 2nd. Rosenblatt Securities reiterated a "buy" rating and issued a $17.00 target price on shares of Sonos in a research note on Wednesday, August 20th. Two research analysts have rated the stock with a Buy rating, According to data from MarketBeat, Sonos currently has an average rating of "Buy" and a consensus target price of $15.00.

Sonos Stock Up 2.5%

The firm has a market capitalization of $2.03 billion, a P/E ratio of -25.85 and a beta of 2.26. The firm's 50-day simple moving average is $13.68 and its 200-day simple moving average is $11.32.

Sonos (NASDAQ:SONO - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.01). Sonos had a negative net margin of 5.41% and a negative return on equity of 18.19%. The company had revenue of $344.76 million for the quarter, compared to the consensus estimate of $324.66 million. During the same quarter in the previous year, the firm earned $0.03 earnings per share. The company's revenue for the quarter was down 13.2% compared to the same quarter last year. As a group, analysts expect that Sonos, Inc. will post -0.37 EPS for the current fiscal year.

Insider Activity at Sonos

In other Sonos news, major shareholder Coliseum Capital Management, L acquired 55,000 shares of the stock in a transaction dated Friday, August 8th. The stock was purchased at an average cost of $11.21 per share, for a total transaction of $616,550.00. Following the acquisition, the insider owned 14,930,280 shares in the company, valued at $167,368,438.80. The trade was a 0.37% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Thomas Conrad acquired 92,300 shares of the stock in a transaction dated Friday, August 8th. The stock was acquired at an average price of $11.10 per share, with a total value of $1,024,530.00. Following the completion of the acquisition, the chief executive officer owned 242,778 shares in the company, valued at approximately $2,694,835.80. The trade was a 61.34% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders have acquired 1,875,053 shares of company stock valued at $20,886,926. Company insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Sonos

A number of hedge funds have recently made changes to their positions in the business. Coliseum Capital Management LLC lifted its holdings in shares of Sonos by 9.7% in the 1st quarter. Coliseum Capital Management LLC now owns 11,775,582 shares of the company's stock worth $125,645,000 after acquiring an additional 1,041,569 shares during the last quarter. Trigran Investments Inc. raised its holdings in Sonos by 24.0% during the 1st quarter. Trigran Investments Inc. now owns 5,248,935 shares of the company's stock valued at $56,006,000 after buying an additional 1,017,223 shares during the last quarter. Cooper Creek Partners Management LLC raised its holdings in Sonos by 38.6% during the 2nd quarter. Cooper Creek Partners Management LLC now owns 4,243,813 shares of the company's stock valued at $45,876,000 after buying an additional 1,181,033 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in Sonos by 3.0% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 3,283,633 shares of the company's stock valued at $35,036,000 after buying an additional 96,111 shares during the last quarter. Finally, Schroder Investment Management Group raised its holdings in Sonos by 2.0% during the 2nd quarter. Schroder Investment Management Group now owns 3,281,397 shares of the company's stock valued at $35,472,000 after buying an additional 63,302 shares during the last quarter. 85.82% of the stock is currently owned by 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.

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