Sonos, Inc. (NASDAQ:SONO) Receives Average Recommendation of “Moderate Buy” from Brokerages

Sonos, Inc. (NASDAQ:SONO) has been assigned an average recommendation of “Moderate Buy” from the five ratings firms that are covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating, two have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $20.00.

SONO has been the subject of a number of analyst reports. Morgan Stanley set a $18.00 price objective on 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 report on Saturday, February 7th. Rosenblatt Securities reissued a “buy” rating and issued a $21.00 price objective on shares of Sonos in a research report on Monday, February 2nd. Zacks Research raised shares of Sonos from a “hold” rating to a “strong-buy” rating in a research report on Monday, February 9th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Sonos in a research note on Thursday, January 22nd.

Sonos Price Performance

Shares of NASDAQ:SONO opened at $15.60 on Wednesday. The firm has a market capitalization of $1.89 billion, a PE ratio of -91.76 and a beta of 2.05. Sonos has a 1 year low of $7.63 and a 1 year high of $19.82. The firm’s 50-day moving average is $16.70 and its two-hundred day moving average is $16.07.

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

More Sonos News

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Major shareholder Coliseum Capital bought large blocks of SONO stock across Feb. 12–17, adding 647,210 shares (~$10.18M total) and raising its stake to ~16.3M shares — a signal of confidence from a >10% holder that can support the stock. Read More.
• Positive Sentiment: Analysts maintain a constructive view: consensus recommendation flagged as “Moderate Buy,” which can help demand for the shares among institutional investors. Read More.
• Neutral Sentiment: Retail promotions and discounts (Arc/Arc Ultra, Ace headphones and sitewide sales) are driving unit movement and short-term revenue but could compress margins or signal inventory clearing if sustained. Read More.
• Neutral Sentiment: Additional sale coverage and product discount stories highlight strong seasonal promotions (Presidents Day sales across outlets), which may boost near-term sales but leave mixed signals on demand strength. Read More.
• Negative Sentiment: New competitor products positioned against Sonos’ Dolby Atmos soundbars increase competitive pressure in the high-end audio market, potentially pressuring pricing and market share. Read More.
• Negative Sentiment: Technicals are a headwind: the stock is trading below both its 50-day and 200-day simple moving averages, suggesting resistance near recent levels that could limit near-term upside until momentum improves. Read More.

Insider Activity

In other Sonos news, major shareholder Coliseum Capital Management, L bought 494,719 shares of the firm’s stock in a transaction that occurred on Wednesday, February 4th. The stock was purchased at an average price of $15.50 per share, for a total transaction of $7,668,144.50. Following the completion of 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 ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Edward P. Lazarus sold 12,000 shares of the stock in a transaction that occurred on Thursday, December 4th. The shares were 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 $8,041,161. This represents a 2.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have bought 1,380,283 shares of company stock valued at $21,736,881. Insiders own 1.25% of the company’s stock.

Institutional Trading of Sonos

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. AQR Capital Management LLC boosted its position in shares of Sonos by 22.4% in the 1st quarter. AQR Capital Management LLC now owns 51,169 shares of the company’s stock valued at $546,000 after purchasing an additional 9,355 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Sonos by 5.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 71,984 shares of the company’s stock valued at $768,000 after purchasing an additional 3,483 shares during the period. Intech Investment Management LLC raised its stake in shares of Sonos by 38.5% during the first quarter. Intech Investment Management LLC now owns 151,152 shares of the company’s stock worth $1,613,000 after purchasing an additional 42,006 shares during the last quarter. Strs Ohio purchased a new stake in shares of Sonos during the first quarter worth approximately $147,000. Finally, CWM LLC lifted its holdings in shares of Sonos by 2,064.7% during the second quarter. CWM LLC now owns 59,896 shares of the company’s stock worth $647,000 after purchasing an additional 57,129 shares during the period. Institutional investors and hedge funds own 85.82% of the company’s stock.

Sonos Company Profile

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.