Sonos (NASDAQ:SONO) Rating Lowered to Buy at Wall Street Zen

Sonos (NASDAQ:SONO) was downgraded by analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research report issued on Saturday.

Several other equities analysts also recently issued reports on SONO. Weiss Ratings raised shares of Sonos from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, August 13th. Rosenblatt Securities reiterated a “buy” rating and set a $21.00 price target on shares of Sonos in a report on Thursday, July 30th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $20.00.

Sonos Stock Performance

NASDAQ SONO opened at $15.83 on Friday. The company has a market cap of $1.87 billion, a price-to-earnings ratio of 35.18 and a beta of 1.95. Sonos has a 1-year low of $12.44 and a 1-year high of $19.82. The company has a 50 day moving average of $14.91 and a 200-day moving average of $14.79.

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

Insider Activity at Sonos

In other news, Director Julius Genachowski sold 19,855 shares of the stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $17.00, for a total transaction of $337,535.00. Following the completion of the sale, the director directly owned 53,775 shares in the company, valued at $914,175. This represents a 26.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.25% of the company’s stock.

Hedge Funds Weigh In On Sonos

Hedge funds and other institutional investors have recently bought and sold shares of the company. Hantz Financial Services Inc. grew its holdings in Sonos by 307.9% during the 4th quarter. Hantz Financial Services Inc. now owns 1,762 shares of the company’s stock worth $31,000 after acquiring an additional 1,330 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Sonos by 699.6% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,055 shares of the company’s stock valued at $36,000 after purchasing an additional 1,798 shares during the period. Daiwa Securities Group Inc. acquired a new position in shares of Sonos in the 4th quarter valued at about $50,000. Quarry LP lifted its stake in shares of Sonos by 485.8% in the 3rd quarter. Quarry LP now owns 3,251 shares of the company’s stock valued at $51,000 after purchasing an additional 2,696 shares during the period. Finally, Kemnay Advisory Services Inc. bought a new stake in shares of Sonos during the 4th quarter valued at about $64,000. 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.