Sonos (NASDAQ:SONO) Stock Breaks Above 200 Day Moving Average – Here’s Why

Sonos, Inc. (NASDAQ:SONO)’s stock price crossed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $15.19 and traded as high as $17.94. Sonos shares last traded at $17.60, with a volume of 1,719,979 shares changing hands.

Wall Street Analyst Weigh In

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

Sonos Trading Down 2.0%

The company has a market capitalization of $2.05 billion, a PE ratio of 38.53 and a beta of 1.88. The stock’s 50-day moving average is $16.28 and its two-hundred day moving average is $15.23.

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

Insider Buying and Selling at Sonos

In other Sonos news, Director Julius Genachowski sold 19,855 shares of the company’s stock in a transaction on Wednesday, July 29th. The stock was 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 $914,175. This represents a 26.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 46,766 shares of Sonos stock in a transaction on Friday, September 25th. The stock was sold at an average price of $18.13, for a total value of $847,867.58. Following the sale, the director owned 69,271 shares of the company’s stock, valued at approximately $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. Insiders sold a total of 76,621 shares of company stock worth $1,339,303 in the last ninety days. 1.25% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sonos

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

About Sonos

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.