Sonos (NASDAQ:SONO) Stock Price Down 14.3% – Should You Sell?

by · The Markets Daily

Sonos, Inc. (NASDAQ:SONO – Get Free Report)’s stock price fell 14.3% on Thursday . The stock traded as low as $9.20 and last traded at $9.24. 599,691 shares traded hands during mid-day trading, a decline of 67% from the average session volume of 1,841,618 shares. The stock had previously closed at $10.77.

Analyst Upgrades and Downgrades

Separately, Rosenblatt Securities restated a “buy” rating and set a $18.00 price objective on shares of Sonos in a research note on Friday, February 7th.

Check Out Our Latest Report on Sonos

Sonos Stock Down 14.2 %

The stock has a market capitalization of $1.10 billion, a price-to-earnings ratio of -16.21 and a beta of 1.98. The business’s 50-day moving average is $12.69 and its two-hundred day moving average is $13.24.

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

Sonos announced that its Board of Directors has authorized a share buyback plan on Monday, February 24th that permits the company to repurchase $150.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 10.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Sonos

Institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP boosted its holdings in Sonos by 10.6% in the fourth quarter. Wellington Management Group LLP now owns 3,654,074 shares of the company’s stock valued at $54,957,000 after purchasing an additional 351,057 shares in the last quarter. Centaurus Financial Inc. purchased a new position in shares of Sonos in the 4th quarter valued at $108,000. Jefferies Financial Group Inc. raised its stake in Sonos by 57.4% during the 4th quarter. Jefferies Financial Group Inc. now owns 16,011 shares of the company’s stock worth $241,000 after acquiring an additional 5,838 shares in the last quarter. Mackenzie Financial Corp lifted its position in Sonos by 153.4% in the fourth quarter. Mackenzie Financial Corp now owns 89,993 shares of the company’s stock valued at $1,353,000 after acquiring an additional 54,475 shares during the last quarter. Finally, Public Employees Retirement System of Ohio boosted its stake in Sonos by 2,283.5% in the fourth quarter. Public Employees Retirement System of Ohio now owns 44,071 shares of the company’s stock valued at $663,000 after acquiring an additional 42,222 shares in the last quarter. Institutional investors and hedge funds own 85.82% of the company’s stock.

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.

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