Sonos (NASDAQ:SONO) Trading 8.9% Higher After Insider Buying Activity

Key Points

• Sonos shares rose 8.9% after significant insider buying, with Coliseum Capital Management purchasing 55,000 shares at an average price of $11.21.
• CEO Thomas Conrad also increased his stake by buying 92,300 shares for $1,024,530, representing a 61.34% increase in his ownership.
• Analyst upgrades include Rosenblatt Securities raising their price target from $15.00 to $17.00 and changing their rating to "buy" for Sonos shares.

Sonos, Inc. (NASDAQ:SONO - Get Free Report) shares traded up 8.9% on Tuesday after an insider bought additional shares in the company. The stock traded as high as $12.60 and last traded at $12.31. 495,024 shares changed hands during trading, a decline of 75% from the average session volume of 1,967,379 shares. The stock had previously closed at $11.30.

Specifically, major shareholder Coliseum Capital Management, L purchased 55,000 shares of the business's stock in a transaction on Friday, August 8th. The shares were bought at an average price of $11.21 per share, for a total transaction of $616,550.00. Following the acquisition, the insider directly owned 14,930,280 shares in the company, valued at $167,368,438.80. This trade represents a 0.37% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, major shareholder Coliseum Capital Management, L purchased 127,406 shares of the business's stock in a transaction on Thursday, August 7th. The shares were bought at an average price of $10.61 per share, for a total transaction of $1,351,777.66. Following the acquisition, the insider owned 14,875,280 shares in the company, valued at $157,826,720.80. This trade represents a 0.86% increase in their ownership of the stock. The disclosure for this purchase can be found here. In related news, CEO Thomas Conrad purchased 92,300 shares of the business's stock in a transaction on Friday, August 8th. The shares were bought at an average price of $11.10 per share, for a total transaction of $1,024,530.00. Following the acquisition, the chief executive officer directly owned 242,778 shares in the company, valued at $2,694,835.80. This trade represents a 61.34% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Analyst Ratings Changes

Several equities research analysts have weighed in on SONO shares. Rosenblatt Securities upped their price target on Sonos from $15.00 to $17.00 and gave the stock a "buy" rating in a report on Thursday, August 7th. Wall Street Zen upgraded Sonos from a "sell" rating to a "hold" rating in a report on Saturday, August 2nd.

Sonos Trading Up 13.5%

The firm has a market cap of $1.55 billion, a PE ratio of -19.59 and a beta of 2.04. The business has a fifty day moving average price of $10.67 and a 200 day moving average price of $10.92.

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 analysts' consensus estimates of ($0.02) by ($0.01). The firm had revenue of $344.76 million during the quarter, compared to analyst estimates of $324.66 million. Sonos had a negative net margin of 5.41% and a negative return on equity of 18.19%. The firm's revenue for the quarter was down 13.2% compared to the same quarter last year. During the same period last year, the company earned $0.03 earnings per share. On average, research analysts expect that Sonos, Inc. will post -0.37 earnings per share for the current fiscal year.

Institutional Trading of Sonos

A number of large investors have recently made changes to their positions in the company. Coliseum Capital Management LLC boosted its position 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 valued at $125,645,000 after purchasing an additional 1,041,569 shares during the period. Trigran Investments Inc. boosted its position in shares of Sonos by 24.0% in the 1st quarter. Trigran Investments Inc. now owns 5,248,935 shares of the company's stock valued at $56,006,000 after purchasing an additional 1,017,223 shares during the period. Wellington Management Group LLP boosted its position in shares of Sonos by 10.6% in the 4th quarter. Wellington Management Group LLP now owns 3,654,074 shares of the company's stock valued at $54,957,000 after purchasing an additional 351,057 shares during the period. Jacobs Levy Equity Management Inc. lifted its position 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 worth $35,036,000 after acquiring an additional 96,111 shares during the period. Finally, Dimensional Fund Advisors LP lifted its position in Sonos by 5.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,687,007 shares of the company's stock worth $40,413,000 after acquiring an additional 148,608 shares during the period. 85.82% of the stock is owned by institutional investors and hedge funds.

Sonos Company Profile

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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