Sonos (NASDAQ:SONO) Shares Gap Up on Strong Earnings

Sonos, Inc. (NASDAQ:SONO) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $14.63, but opened at $16.10. Sonos shares last traded at $16.4940, with a volume of 600,729 shares changing hands.

The company reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.08. The company had revenue of $545.66 million for the quarter, compared to analyst estimates of $536.93 million. Sonos had a negative net margin of 4.24% and a negative return on equity of 11.66%. Sonos’s revenue was down .9% compared to the same quarter last year. During the same period last year, the company posted $0.64 earnings per share.

Analyst Upgrades and Downgrades

SONO has been the topic of a number of research analyst reports. Wall Street Zen cut shares of Sonos from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Sonos in a research report on Thursday, January 22nd. Morgan Stanley set a $17.00 target price on shares of Sonos and gave the company an “equal weight” rating in a research report on Thursday, November 6th. Jefferies Financial Group raised their price objective on shares of Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a report on Monday, January 5th. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $21.00 target price on shares of Sonos in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $19.67.

Insider Activity at Sonos

In other news, insider Edward P. Lazarus sold 12,000 shares of Sonos stock in a transaction 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 of the company’s stock, valued at $8,041,161. The trade was a 2.76% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Thomas Conrad acquired 62,325 shares of the company’s stock in a transaction dated Monday, November 17th. The shares were bought at an average cost of $16.17 per share, with a total value of $1,007,795.25. Following the purchase, the chief executive officer owned 305,103 shares in the company, valued at approximately $4,933,515.51. The trade was a 25.67% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 1.25% of the stock is owned by insiders.

Institutional Trading of Sonos

Several institutional investors have recently added to or reduced their stakes in SONO. Nisa Investment Advisors LLC raised its stake in Sonos by 65.6% during the second quarter. Nisa Investment Advisors LLC now owns 3,203 shares of the company’s stock valued at $35,000 after buying an additional 1,269 shares in the last quarter. Quarry LP lifted its position in Sonos by 485.8% in 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 period. Farther Finance Advisors LLC boosted its stake in Sonos by 222.7% during the 2nd quarter. Farther Finance Advisors LLC now owns 3,714 shares of the company’s stock valued at $40,000 after purchasing an additional 2,563 shares in the last quarter. GAMMA Investing LLC increased its position in shares of Sonos by 10.2% during the 4th quarter. GAMMA Investing LLC now owns 6,832 shares of the company’s stock valued at $120,000 after purchasing an additional 631 shares during the period. Finally, Centaurus Financial Inc. raised its stake in shares of Sonos by 9.0% in the 2nd quarter. Centaurus Financial Inc. now owns 10,375 shares of the company’s stock worth $112,000 after buying an additional 856 shares in the last quarter. 85.82% of the stock is owned by institutional investors and hedge funds.

Sonos Price Performance

The company has a fifty day moving average price of $17.20 and a two-hundred day moving average price of $15.70. The firm has a market cap of $1.91 billion, a price-to-earnings ratio of -30.78 and a beta of 2.05.

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.