Wall Street Zen Upgrades Sonos (NASDAQ:SONO) to "Strong-Buy"

Key Points

• Wall Street Zen upgraded Sonos (NASDAQ:SONO) from "buy" to "strong-buy", but the Street consensus remains a Hold with a $20.00 average price target per MarketBeat data.
• Sonos beat the latest quarter's estimates—$0.93 EPS vs. $0.85 expected and $545.66M revenue vs. $536.93M—but revenue was down 0.9% YoY and analysts project -0.37 EPS for the current year; shares trade around $14.37 (market cap ~$1.74B), below the 12‑month high of $19.82.
• Major shareholder Coliseum Capital purchased 494,719 shares at about $15.50 (~$7.67M), insiders bought over 3.14M shares last quarter, and institutional investors own roughly 85.8% of Sonos.

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

Several other research analysts have also weighed in on SONO. Weiss Ratings reissued a "sell (d-)" rating on shares of Sonos in a research report on Thursday, January 22nd. Zacks Research lowered Sonos from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 6th. Rosenblatt Securities reissued a "buy" rating and issued a $21.00 price objective on shares of Sonos in a research report on Monday, February 2nd. Jefferies Financial Group raised their target price on Sonos from $19.00 to $21.00 and gave the company a "buy" rating in a research note on Monday, January 5th. Finally, Morgan Stanley set a $18.00 target price on Sonos in a research note on Wednesday, February 4th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $20.00.

Sonos Stock Up 1.6%

Shares of NASDAQ:SONO opened at $14.37 on Friday. The firm has a market cap of $1.74 billion, a P/E ratio of -84.53 and a beta of 1.99. Sonos has a 12-month low of $7.82 and a 12-month high of $19.82. The business has a fifty day simple moving average of $14.32 and a 200 day simple moving average of $16.08.

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 positive return on equity of 0.82% and a negative net margin of 1.22%.The firm had revenue of $545.66 million during the quarter, compared to analyst estimates of $536.93 million. During the same period last year, the company posted $0.64 EPS. The business's quarterly revenue was down .9% on a year-over-year basis. As a group, equities research analysts expect that Sonos will post -0.37 EPS for the current year.

Insider Buying and Selling at Sonos

In other Sonos news, major shareholder Coliseum Capital Management, L bought 494,719 shares of the business's stock in a transaction dated Wednesday, February 4th. The shares were purchased at an average price of $15.50 per share, for a total transaction of $7,668,144.50. Following the purchase, the insider directly owned 15,424,999 shares of the company's stock, valued at approximately $239,087,484.50. This represents a 3.31% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last quarter, insiders purchased 3,140,482 shares of company stock valued at $46,905,007. 1.25% of the stock is owned by insiders.

Hedge Funds Weigh In On Sonos

A number of hedge funds and other institutional investors have recently modified their holdings of SONO. GAMMA Investing LLC increased its holdings in shares of Sonos by 10.2% in the fourth quarter. GAMMA Investing LLC now owns 6,832 shares of the company's stock worth $120,000 after purchasing an additional 631 shares during the period. Centaurus Financial Inc. grew its position in Sonos by 6.6% in the third quarter. Centaurus Financial Inc. now owns 11,056 shares of the company's stock worth $175,000 after acquiring an additional 681 shares in the last quarter. Arizona State Retirement System grew its position in Sonos by 2.3% in the third quarter. Arizona State Retirement System now owns 31,970 shares of the company's stock worth $505,000 after acquiring an additional 706 shares in the last quarter. State of Wisconsin Investment Board grew its position in Sonos by 1.7% in the fourth quarter. State of Wisconsin Investment Board now owns 43,982 shares of the company's stock worth $772,000 after acquiring an additional 724 shares in the last quarter. Finally, Intech Investment Management LLC grew its position in Sonos by 0.7% in the fourth quarter. Intech Investment Management LLC now owns 117,718 shares of the company's stock worth $2,067,000 after acquiring an additional 776 shares in the last quarter. Hedge funds and other institutional investors own 85.82% of the company's stock.

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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