Sonos (NASDAQ:SONO) Stock Price Down 4.1% – Time to Sell?

Shares of Sonos, Inc. (NASDAQ:SONO) fell 4.1% during mid-day trading on Monday . The company traded as low as $17.99 and last traded at $17.6860. 71,477 shares traded hands during mid-day trading, a decline of 96% from the average session volume of 1,887,296 shares. The stock had previously closed at $18.44.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on SONO. Rosenblatt Securities increased their price target on Sonos from $17.00 to $21.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Sonos in a research report on Wednesday, October 8th. Wall Street Zen raised shares of Sonos from a “hold” rating to a “buy” rating in a research note on Saturday, November 22nd. Finally, Morgan Stanley set a $17.00 price target on shares of Sonos and gave the stock an “equal weight” rating in a research note on Thursday, November 6th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $17.00.

Sonos Trading Down 0.1%

The firm has a market capitalization of $2.15 billion, a P/E ratio of -34.36 and a beta of 2.01. The business’s fifty day moving average is $17.51 and its 200 day moving average is $14.48.

Sonos (NASDAQ:SONO) last posted its quarterly earnings results on Wednesday, November 5th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.11). The business had revenue of $287.90 million during the quarter, compared to analyst estimates of $535.43 million. Sonos had a negative return on equity of 11.66% and a negative net margin of 4.24%.The company’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.44) EPS. As a group, sell-side analysts predict that Sonos, Inc. will post -0.37 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Edward P. Lazarus sold 12,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $19.00, for a total value of $228,000.00. Following the completion of the transaction, the insider owned 423,219 shares of the company’s stock, valued at approximately $8,041,161. This trade represents a 2.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Thomas Conrad bought 62,325 shares of Sonos stock in a transaction dated Monday, November 17th. The stock was acquired at an average price of $16.17 per share, with a total value of $1,007,795.25. Following the acquisition, the chief executive officer directly owned 305,103 shares of the company’s stock, valued at approximately $4,933,515.51. This represents a 25.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 1.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Mirabella Financial Services LLP acquired a new stake in Sonos during the 3rd quarter worth about $208,000. Tudor Investment Corp ET AL boosted its holdings in shares of Sonos by 190.3% during the third quarter. Tudor Investment Corp ET AL now owns 722,740 shares of the company’s stock worth $11,419,000 after purchasing an additional 473,769 shares during the period. CIBC Bancorp USA Inc. acquired a new stake in shares of Sonos during the third quarter worth approximately $198,000. Centaurus Financial Inc. grew its position in Sonos by 6.6% during the third quarter. Centaurus Financial Inc. now owns 11,056 shares of the company’s stock valued at $175,000 after purchasing an additional 681 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. increased its stake in Sonos by 6.6% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 3,196,401 shares of the company’s stock valued at $50,503,000 after buying an additional 198,728 shares during the period. 85.82% of the stock is owned by institutional investors and hedge funds.

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.