Sonos (NASDAQ:SONO) Shares Down 5% – Should You Sell?

by · The Markets Daily

Sonos, Inc. (NASDAQ:SONO – Get Free Report)’s share price was down 5% on Friday . The stock traded as low as $7.99 and last traded at $7.87. Approximately 128,570 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 1,898,154 shares. The stock had previously closed at $8.28.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on SONO. Jefferies Financial Group lowered their price target on Sonos from $19.00 to $13.00 and set a “buy” rating on the stock in a report on Monday. Rosenblatt Securities restated a “buy” rating and set a $18.00 target price on shares of Sonos in a research report on Friday, February 7th.

Get Our Latest Research Report on SONO

Sonos Trading Down 5.5 %

The business has a 50-day moving average price of $11.84 and a 200 day moving average price of $13.01. The stock has a market capitalization of $931.35 million, a P/E ratio of -13.54 and a beta of 2.01.

Sonos (NASDAQ:SONO – Get Free Report) last announced its earnings results on Thursday, February 6th. The company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.36 by $0.04. Sonos had a negative return on equity of 13.17% and a negative net margin of 4.73%. On average, sell-side analysts predict that Sonos, Inc. will post -0.37 earnings per share for the current fiscal year.

Sonos announced that its Board of Directors has authorized a stock repurchase program on Monday, February 24th that allows the company to repurchase $150.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 10.1% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In other news, major shareholder Coliseum Capital Management, L bought 62,506 shares of the stock in a transaction on Monday, April 7th. The stock was acquired at an average cost of $8.38 per share, for a total transaction of $523,800.28. Following the acquisition, the insider now owns 12,118,088 shares of the company’s stock, valued at $101,549,577.44. This represents a 0.52 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 1.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in SONO. NBW Capital LLC lifted its holdings in shares of Sonos by 42.6% during the 4th quarter. NBW Capital LLC now owns 256,134 shares of the company’s stock valued at $3,852,000 after purchasing an additional 76,454 shares during the last quarter. KLP Kapitalforvaltning AS acquired a new position in Sonos during the 4th quarter valued at about $403,000. Barclays PLC raised its stake in Sonos by 120.3% in the third quarter. Barclays PLC now owns 923,437 shares of the company’s stock valued at $11,350,000 after buying an additional 504,293 shares during the last quarter. Nisa Investment Advisors LLC boosted its holdings in Sonos by 7,557.0% in the fourth quarter. Nisa Investment Advisors LLC now owns 156,049 shares of the company’s stock worth $2,347,000 after acquiring an additional 154,011 shares in the last quarter. Finally, Raymond James Financial Inc. purchased a new stake in shares of Sonos during the fourth quarter worth about $1,676,000. 85.82% of the stock is owned by institutional investors.

Sonos Company Profile

(Get Free Report)

Sonos, Inc, together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website.

Further Reading