Sonos, Inc. (NASDAQ:SONO) Sees Large Increase in Short Interest

Sonos, Inc. (NASDAQ:SONO) was the recipient of a large growth in short interest in the month of September. As of September 30th, there was short interest totaling 14,464,055 shares, a growth of 55.4% from the September 15th total of 9,308,963 shares. Approximately 12.4% of the shares of the company are sold short. Based on an average daily volume of 2,410,961 shares, the short-interest ratio is currently 6.0 days.

Insider Buying and Selling

In related news, Director Julius Genachowski sold 19,855 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $17.00, for a total value of $337,535.00. Following the transaction, the director owned 53,775 shares of the company’s stock, valued at approximately $914,175. This trade represents a 26.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 46,766 shares of the business’s stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $18.13, for a total transaction of $847,867.58. Following the sale, the director owned 69,271 shares of the company’s stock, valued at $1,255,883.23. This trade represents a 40.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 76,621 shares of company stock worth $1,339,303. 1.25% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in Sonos during the second quarter valued at about $248,067,000. Renaissance Technologies LLC grew its position in shares of Sonos by 258.8% during the first quarter. Renaissance Technologies LLC now owns 1,706,501 shares of the company’s stock worth $22,867,000 after purchasing an additional 1,230,900 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of Sonos during the second quarter worth about $13,102,000. OP Asset Management Ltd purchased a new stake in shares of Sonos during the first quarter worth about $10,414,000. Finally, Two Seas Capital LP bought a new stake in Sonos during the 2nd quarter valued at approximately $9,615,000. Institutional investors own 85.82% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Wall Street Zen lowered Sonos from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 22nd. Rosenblatt Securities reiterated a “buy” rating and set a $21.00 target price on shares of Sonos in a research report on Thursday, July 30th. Finally, Weiss Ratings upgraded Sonos from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Sonos has a consensus rating of “Hold” and an average target price of $20.00.

Sonos Trading Down 2.0%

Sonos stock traded down $0.35 during midday trading on Friday, hitting $17.34. The stock had a trading volume of 1,499,272 shares, compared to its average volume of 2,217,940. Sonos has a 52-week low of $12.44 and a 52-week high of $19.82. The company has a market capitalization of $2.05 billion, a PE ratio of 38.53 and a beta of 1.88. The firm’s fifty day moving average is $16.31 and its two-hundred day moving average is $15.24.

Sonos (NASDAQ:SONO) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.23. The business had revenue of $375.26 million for the quarter, compared to the consensus estimate of $365.65 million. Sonos had a net margin of 3.82% and a return on equity of 19.10%. The company’s revenue for the quarter was up 8.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.03) earnings per share. As a group, equities research analysts predict that Sonos will post 0.69 earnings per share for the current fiscal year.

Sonos Company Profile

Sonos, Inc is an audio technology company that develops and sells connected sound products and software for homes and other personal listening environments. Its products are designed to work together over wireless networks, allowing users to stream and control music, podcasts, television audio and other content through the Sonos app and compatible services.

The company’s product portfolio includes wireless home speakers, portable speakers, soundbars, home theater components, subwoofers and headphones.