Sonos (NASDAQ:SONO) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Sonos (NASDAQ:SONO) from a hold rating to a strong-buy rating in a research report sent to investors on Monday morning,Zacks.com reports.

Several other research firms have also recently issued reports on SONO. Jefferies Financial Group boosted their target price on Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. Weiss Ratings restated a “sell (d-)” rating on shares of Sonos in a research note on Thursday, January 22nd. Morgan Stanley set a $18.00 price objective on Sonos in a research report on Wednesday, February 4th. Rosenblatt Securities reissued a “buy” rating and issued a $21.00 target price on shares of Sonos in a report on Monday, February 2nd. Finally, Wall Street Zen raised shares of Sonos from a “hold” rating to a “buy” rating in a research note on Saturday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $20.00.

Sonos Price Performance

Shares of NASDAQ SONO opened at $16.88 on Monday. The stock has a fifty day moving average price of $17.01 and a 200 day moving average price of $15.90. Sonos has a 1-year low of $7.63 and a 1-year high of $19.82. The company has a market cap of $2.04 billion, a PE ratio of -99.41 and a beta of 2.05.

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

Insider Activity at Sonos

In related news, major shareholder Coliseum Capital Management, L bought 26,824 shares of the stock in a transaction on Friday, February 6th. The shares were purchased at an average price of $16.49 per share, for a total transaction of $442,327.76. Following the acquisition, the insider owned 15,663,353 shares in the company, valued at $258,288,690.97. This represents a 0.17% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Edward P. Lazarus sold 12,000 shares of the business’s stock in a transaction on Thursday, December 4th. The stock was sold at an average price of $19.00, for a total value of $228,000.00. Following the completion of the transaction, the insider directly owned 423,219 shares of the company’s stock, valued at approximately $8,041,161. This trade represents a 2.76% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have purchased 795,398 shares of company stock valued at $12,564,091. 1.25% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Sonos

A number of hedge funds and other institutional investors have recently modified their holdings of SONO. Hantz Financial Services Inc. boosted its position in Sonos by 307.9% during the fourth 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 last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in 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 acquiring an additional 1,798 shares during the last quarter. Daiwa Securities Group Inc. purchased a new position in shares of Sonos during the 4th quarter worth $50,000. Nisa Investment Advisors LLC boosted its holdings in shares of Sonos by 65.6% during the second quarter. Nisa Investment Advisors LLC now owns 3,203 shares of the company’s stock worth $35,000 after purchasing an additional 1,269 shares during the last quarter. Finally, Quarry LP boosted its holdings in shares of Sonos by 485.8% during the third quarter. Quarry LP now owns 3,251 shares of the company’s stock worth $51,000 after purchasing an additional 2,696 shares during the last quarter. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

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.