Sonos (NASDAQ:SONO) Stock Price Down 5.5% – What’s Next?

Sonos, Inc. (NASDAQ:SONO)’s stock price traded down 5.5% on Tuesday . The company traded as low as $17.37 and last traded at $17.1080. 213,647 shares changed hands during mid-day trading, a decline of 76% from the average session volume of 889,962 shares. The stock had previously closed at $18.10.

Analyst Ratings Changes

SONO has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Sonos in a research note on Wednesday, October 8th. Morgan Stanley set a $17.00 price target on Sonos and gave the company an “equal weight” rating in a report on Thursday, November 6th. Rosenblatt Securities lifted their price target on shares of Sonos from $17.00 to $21.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. Jefferies Financial Group boosted their price objective on shares of Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a research note on Monday. Finally, Wall Street Zen raised shares of Sonos from a “hold” rating to a “buy” rating in a report on Saturday, November 22nd. Two equities 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. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $19.67.

Sonos Price Performance

The firm has a market cap of $2.02 billion, a P/E ratio of -32.23 and a beta of 2.02. The company’s 50 day moving average is $17.65 and its two-hundred day moving average is $15.04.

Sonos (NASDAQ:SONO) last posted its quarterly earnings results on Wednesday, November 5th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of $0.05 by ($0.11). Sonos had a negative net margin of 4.24% and a negative return on equity of 11.66%. The firm had revenue of $287.90 million during the quarter, compared to analyst estimates of $535.43 million. During the same period last year, the company earned ($0.44) EPS. The company’s revenue was up 12.7% on a year-over-year basis. Research analysts predict that Sonos, Inc. will post -0.37 EPS for the current year.

Insider Transactions at Sonos

In other Sonos news, insider Edward P. Lazarus sold 12,000 shares of the firm’s stock in a transaction dated 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 trade represents a 2.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Thomas Conrad acquired 62,325 shares of the stock in a transaction dated Monday, November 17th. The stock was bought 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 owned 305,103 shares in the company, valued at approximately $4,933,515.51. This trade represents a 25.67% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 1.80% of the company’s stock.

Institutional Investors Weigh In On Sonos

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its position in Sonos by 5.9% in the 3rd quarter. Vanguard Group Inc. now owns 13,730,353 shares of the company’s stock valued at $216,940,000 after purchasing an additional 768,776 shares during the last quarter. Cooper Creek Partners Management LLC increased its stake in shares of Sonos by 38.6% in the second quarter. Cooper Creek Partners Management LLC now owns 4,243,813 shares of the company’s stock valued at $45,876,000 after buying an additional 1,181,033 shares in the last quarter. Schroder Investment Management Group raised its holdings in shares of Sonos by 2.0% in the second quarter. Schroder Investment Management Group now owns 3,281,397 shares of the company’s stock valued at $35,472,000 after buying an additional 63,302 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in shares of Sonos by 6.6% in the third quarter. Jacobs Levy Equity Management Inc. now owns 3,196,401 shares of the company’s stock valued at $50,503,000 after buying an additional 198,728 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in Sonos by 626.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,663,480 shares of the company’s stock worth $42,083,000 after buying an additional 2,296,996 shares in the last quarter. 85.82% of the stock is currently owned by institutional investors.

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.