Sonos (NASDAQ:SONO) Trading Down 4.1% – Here’s Why

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

Analyst Ratings Changes

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

Sonos Price Performance

The company has a market capitalization of $2.17 billion, a PE ratio of -34.72 and a beta of 2.01. The company’s fifty day moving average is $17.44 and its 200-day moving average is $14.37.

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

Insiders Place Their Bets

In other news, CEO Thomas Conrad bought 62,325 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The stock was purchased at an average price of $16.17 per share, with a total value of $1,007,795.25. Following the completion of the acquisition, the chief executive officer directly owned 305,103 shares of the company’s stock, valued at $4,933,515.51. This trade represents a 25.67% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Edward P. Lazarus sold 12,000 shares of the stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $19.00, for a total transaction of $228,000.00. Following the completion of the transaction, the insider owned 423,219 shares in the company, valued at approximately $8,041,161. This trade represents a 2.76% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.80% of the company’s stock.

Hedge Funds Weigh In On Sonos

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in shares of Sonos by 5.9% in the third quarter. Vanguard Group Inc. now owns 13,730,353 shares of the company’s stock valued at $216,940,000 after purchasing an additional 768,776 shares in the last quarter. Coliseum Capital Management LLC grew its holdings in Sonos by 9.7% in the 1st quarter. Coliseum Capital Management LLC now owns 11,775,582 shares of the company’s stock valued at $125,645,000 after buying an additional 1,041,569 shares in the last quarter. Cooper Creek Partners Management LLC increased its stake in shares of Sonos by 38.6% in the 2nd quarter. Cooper Creek Partners Management LLC now owns 4,243,813 shares of the company’s stock worth $45,876,000 after acquiring an additional 1,181,033 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in shares of Sonos by 3.0% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 3,283,633 shares of the company’s stock worth $35,036,000 after acquiring an additional 96,111 shares during the period. Finally, Schroder Investment Management Group boosted its position in shares of Sonos by 2.0% during the 2nd quarter. Schroder Investment Management Group now owns 3,281,397 shares of the company’s stock valued at $35,472,000 after acquiring an additional 63,302 shares during the last quarter. 85.82% of the stock is currently 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.