Sonos (NASDAQ:SONO) Trading Down 4.6% After Insider Selling

Sonos, Inc. (NASDAQ:SONO)’s stock price traded down 4.6% during mid-day trading on Friday after an insider sold shares in the company. The stock traded as low as $15.35 and last traded at $15.42. 346,878 shares were traded during mid-day trading, a decline of 80% from the average daily volume of 1,738,685 shares. The stock had previously closed at $16.16.

Specifically, Director Karen Boone sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $15.39, for a total value of $153,900.00. Following the completion of the sale, the director directly owned 84,271 shares in the company, valued at $1,296,930.69. This trade represents a 10.61% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on SONO shares. Weiss Ratings raised Sonos from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, August 13th. Wall Street Zen downgraded Sonos from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 22nd. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $21.00 target price on shares of Sonos in a research report on Thursday, July 30th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $20.00.

Sonos Price Performance

The company has a market capitalization of $1.83 billion, a P/E ratio of 34.28 and a beta of 1.93. The firm has a fifty day moving average price of $15.10 and a 200-day moving average price of $14.73.

Sonos (NASDAQ:SONO) last posted 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. The business had revenue of $375.26 million during the quarter, compared to the consensus estimate of $365.65 million. Sonos had a net margin of 3.82% and a return on equity of 19.10%. The firm’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same quarter last year, the company posted ($0.03) earnings per share. On average, research analysts forecast that Sonos, Inc. will post 0.69 EPS for the current year.

Hedge Funds Weigh In On Sonos

Several hedge funds have recently made changes to their positions in SONO. Hantz Financial Services Inc. increased its position in shares of Sonos by 307.9% during the fourth quarter. Hantz Financial Services Inc. now owns 1,762 shares of the company’s stock valued at $31,000 after buying an additional 1,330 shares during the period. Northwestern Mutual Wealth Management Co. boosted its position in shares of Sonos by 699.6% in the fourth 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 period. Daiwa Securities Group Inc. bought a new position in shares of Sonos in the fourth quarter valued at approximately $50,000. Quarry LP grew its stake in Sonos by 485.8% during the third quarter. Quarry LP now owns 3,251 shares of the company’s stock valued at $51,000 after acquiring an additional 2,696 shares in the last quarter. Finally, Meeder Asset Management Inc. purchased a new position in Sonos during the second quarter valued at approximately $59,000. 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.