Sonos (NASDAQ:SONO) Upgraded to “Buy” at Wall Street Zen

Wall Street Zen upgraded shares of Sonos (NASDAQ:SONO) from a hold rating to a buy rating in a research note published on Saturday.

A number of other brokerages also recently commented on SONO. Rosenblatt Securities reiterated a “buy” rating and set a $21.00 price objective on shares of Sonos in a research report on Monday, February 2nd. Morgan Stanley set a $18.00 price target on Sonos in a report on Wednesday. Weiss Ratings reissued a “sell (d-)” rating on shares of Sonos in a report on Thursday, January 22nd. Finally, 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 research report on Monday, January 5th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Sonos has an average rating of “Hold” and a consensus target price of $20.00.

Sonos Stock Up 3.1%

Shares of NASDAQ SONO opened at $17.08 on Friday. The firm has a 50-day simple moving average of $17.07 and a 200-day simple moving average of $15.78. The stock has a market capitalization of $2.06 billion, a price-to-earnings ratio of -100.47 and a beta of 2.05. Sonos has a 52 week low of $7.63 and a 52 week high of $19.82.

Sonos (NASDAQ:SONO) last posted its quarterly earnings results 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 firm had revenue of $545.66 million for the quarter, compared to analyst estimates of $536.93 million. Sonos had a negative net margin of 1.22% and a positive return on equity of 0.82%. Sonos’s quarterly revenue was down .9% on a year-over-year basis. During the same period in the previous year, the business posted $0.64 earnings per share. As a group, equities research analysts expect that Sonos will post -0.37 EPS for the current year.

Insider Activity

In other news, major shareholder Coliseum Capital Management, L bought 26,824 shares of the business’s stock in a transaction on Friday, February 6th. The shares were bought at an average price of $16.49 per share, with a total value of $442,327.76. Following the completion of the transaction, the insider directly owned 15,663,353 shares in the company, valued at $258,288,690.97. This trade represents a 0.17% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Thomas Conrad purchased 62,325 shares of the firm’s stock in a transaction on Monday, November 17th. The shares were purchased at an average price of $16.17 per share, for a total transaction of $1,007,795.25. Following the completion of the purchase, the chief executive officer directly owned 305,103 shares of the company’s stock, valued at $4,933,515.51. This represents a 25.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have purchased 795,398 shares of company stock valued at $12,564,091. Company insiders own 1.25% of the company’s stock.

Hedge Funds Weigh In On Sonos

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

Sonos News Summary

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Q1 earnings beat and margin/strategy message — Sonos reported stronger-than-expected revenue and EPS, highlighted margin improvement and product-led growth; analysts and press note this as the main catalyst for the stock move. Why Sonos (SONO) Is Up 6.8%
• Positive Sentiment: Shares gap up after earnings — coverage noting the post-earnings gap and investor reaction supports near-term momentum. Sonos Shares Gap Up Following Earnings Beat
• Positive Sentiment: New product launch (Amp Multi) — management emphasized new hardware that targets more complex audio setups, supporting future revenue and ecosystem expansion. This underpins the bullish interpretation of the quarter. Sonos is back with new hardware
• Positive Sentiment: Reliability and customer focus restored — company messaging about fixing reliability issues and refocusing on customer advocacy should reduce churn and help long-term brand value. With reliability restored, Sonos focuses on customer advocacy
• Neutral Sentiment: Positive product reviews — editorial reviews (e.g., Sonos Ace headphones and Era 100) praise product quality, supporting brand premium but not an immediate revenue signal. Are the Sonos Ace still worth it in 2026?
• Neutral Sentiment: Retail promotions and flash sales — multiple outlets highlight discounts on Era 100, Arc Ultra + Sub 4, and Ace headphones for events (Valentine’s / game day). Promotions can drive volume but timing/scale matter for quarterly results. Save $550 Off the Sonos Arc Ultra
• Negative Sentiment: Dealer clearance & record-low pricing — reports that Amazon and others are clearing out Era 100 units and Ace headphones have hit record low prices could pressure ASPs and margins if discounts persist or expand. This is the principal downside risk investors will watch. Sonos Era 100 Hits Record Low
• Negative Sentiment: Frequent promotional cadence — sustained discounting across core products (earbuds, speakers, soundbars) can boost near-term unit sales but erode gross margins and brand premium if prolonged. Sonos Ace headphones drop to a record low

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.