Sonos' (SONO) Buy Rating Reiterated at Rosenblatt Securities

Key Points

• Rosenblatt Securities reiterated a "buy" rating for Sonos, with a price target of $17.00, indicating a potential upside of 29.38% based on the current stock price.
• Sonos reported quarterly earnings of ($0.03) per share, missing expectations, while revenues decreased 13.2% year-over-year.
• Major shareholder Coliseum Capital Management and CEO Thomas Conrad both made significant stock purchases recently, signaling confidence in the company's future performance.

Sonos (NASDAQ:SONO - Get Free Report)'s stock had its "buy" rating reiterated by Rosenblatt Securities in a report released on Wednesday,Benzinga reports. They presently have a $17.00 price objective on the stock. Rosenblatt Securities' price objective suggests a potential upside of 29.38% from the stock's current price.

Separately, Wall Street Zen raised Sonos from a "sell" rating to a "hold" rating in a report on Saturday, August 2nd. Two research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Sonos presently has an average rating of "Hold" and a consensus price target of $13.67.

Sonos Trading Down 1.3%

Shares of Sonos stock opened at $13.14 on Wednesday. Sonos has a twelve month low of $7.63 and a twelve month high of $15.89. The stock has a market capitalization of $1.59 billion, a price-to-earnings ratio of -20.16 and a beta of 2.04. The business's 50 day simple moving average is $11.02 and its 200-day simple moving average is $10.91.

Sonos (NASDAQ:SONO - Get Free Report) last issued its quarterly earnings data 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). Sonos had a negative return on equity of 18.19% and a negative net margin of 5.41%.The business had revenue of $344.76 million during the quarter, compared to the consensus estimate of $324.66 million. During the same period last year, the company earned $0.03 earnings per share. The business's quarterly revenue was down 13.2% compared to the same quarter last year. Sell-side analysts predict that Sonos will post -0.37 earnings per share for the current year.

Insiders Place Their Bets

In other Sonos news, major shareholder Coliseum Capital Management, L bought 55,000 shares of Sonos stock in a transaction dated Friday, August 8th. The stock was bought at an average price of $11.21 per share, for a total transaction of $616,550.00. Following the completion of the acquisition, the insider directly owned 14,930,280 shares of the company's stock, valued at approximately $167,368,438.80. This trade represents a 0.37% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Thomas Conrad acquired 92,300 shares of Sonos stock in a transaction that occurred on Friday, August 8th. The shares were purchased at an average cost of $11.10 per share, with a total value of $1,024,530.00. Following the transaction, the chief executive officer owned 242,778 shares of the company's stock, 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. Insiders have purchased 2,950,069 shares of company stock worth $31,713,016 over the last three months. Company insiders own 1.80% of the company's stock.

Institutional Trading of Sonos

A number of institutional investors and hedge funds have recently made changes to their positions in SONO. Wells Fargo & Company MN lifted its position in shares of Sonos by 26.2% in the fourth quarter. Wells Fargo & Company MN now owns 89,595 shares of the company's stock worth $1,348,000 after buying an additional 18,592 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Sonos in the fourth quarter worth about $1,676,000. Mariner LLC lifted its position in shares of Sonos by 8.1% in the fourth quarter. Mariner LLC now owns 51,865 shares of the company's stock worth $780,000 after buying an additional 3,908 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Sonos by 5.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,687,007 shares of the company's stock worth $40,413,000 after buying an additional 148,608 shares during the last quarter. Finally, MetLife Investment Management LLC lifted its position in shares of Sonos by 5.9% in the fourth quarter. MetLife Investment Management LLC now owns 74,827 shares of the company's stock worth $1,125,000 after buying an additional 4,179 shares during the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

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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