Sonos (NASDAQ:SONO) Rating Lowered to “Hold” at Zacks Research

Sonos (NASDAQ:SONO) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other equities research analysts also recently issued reports on SONO. Weiss Ratings reiterated a “sell (d-)” rating on shares of Sonos in a research report on Thursday, January 22nd. Rosenblatt Securities reiterated a “buy” rating and issued a $21.00 target price on shares of Sonos in a research report on Monday, February 2nd. Morgan Stanley set a $18.00 target price on shares of Sonos in a research report on Wednesday, February 4th. Wall Street Zen upgraded shares of Sonos from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Finally, Jefferies Financial Group increased their target price on shares of Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $20.00.

Sonos Stock Performance

Shares of NASDAQ:SONO opened at $13.40 on Monday. The company has a market cap of $1.62 billion, a PE ratio of -78.82 and a beta of 1.99. Sonos has a 52 week low of $7.63 and a 52 week high of $19.82. The firm has a 50 day simple moving average of $14.59 and a 200 day simple moving average of $16.19.

Sonos (NASDAQ:SONO) last issued its quarterly earnings results on Tuesday, February 3rd. The company reported $0.93 EPS for the quarter, beating the consensus estimate of $0.85 by $0.08. The business had revenue of $545.66 million during the quarter, compared to the consensus estimate of $536.93 million. Sonos had a negative net margin of 1.22% and a positive return on equity of 0.82%. The firm’s quarterly revenue was down .9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.64 EPS. On average, equities analysts predict that Sonos will post -0.37 earnings per share for the current year.

Insider Activity at Sonos

In other Sonos news, major shareholder Coliseum Capital Management, L purchased 494,719 shares of the company’s stock in a transaction dated Wednesday, February 4th. The shares were bought 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 in the company, valued at $239,087,484.50. This trade represents a 3.31% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last quarter, insiders have acquired 3,140,482 shares of company stock worth $46,905,007. Corporate insiders own 1.25% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of Sonos by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 13,935,287 shares of the company’s stock worth $244,704,000 after purchasing an additional 204,934 shares during the last quarter. Jacobs Levy Equity Management Inc. increased its stake in shares of Sonos by 2.7% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 3,281,869 shares of the company’s stock worth $57,630,000 after purchasing an additional 85,468 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Sonos by 20.8% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,216,366 shares of the company’s stock worth $56,479,000 after purchasing an additional 552,886 shares during the last quarter. Geode Capital Management LLC grew its stake in Sonos by 0.7% in the 4th quarter. Geode Capital Management LLC now owns 2,908,435 shares of the company’s stock valued at $51,082,000 after buying an additional 20,602 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its stake in Sonos by 4.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,888,760 shares of the company’s stock valued at $33,167,000 after buying an additional 82,156 shares during the last quarter. Institutional investors and hedge funds own 85.82% of the company’s stock.

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.