Sonos (NASDAQ:SONO) Shares Down 5% – What’s Next?

Sonos, Inc. (NASDAQ:SONO)’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 changed hands 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

SONO has been the topic of several research analyst reports. Rosenblatt Securities restated a “buy” rating and issued a $18.00 price objective on shares of Sonos in a research report on Friday, February 7th. Jefferies Financial Group decreased their price target on Sonos from $19.00 to $13.00 and set a “buy” rating on the stock in a research note on Monday.

Sonos Stock Performance

The stock’s 50-day simple moving average is $11.84 and its 200-day simple moving average is $13.01. The firm has a market capitalization of $931.35 million, a PE ratio of -13.54 and a beta of 2.01.

Sonos (NASDAQ:SONO) last released its quarterly earnings results on Thursday, February 6th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.04. Sonos had a negative return on equity of 13.17% and a negative net margin of 4.73%. As a group, 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 approved a share repurchase program on Monday, February 24th that authorizes the company to repurchase $150.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 10.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

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

Institutional Trading of Sonos

A number of institutional investors and hedge funds have recently modified their holdings of SONO. Wellington Management Group LLP lifted its stake in Sonos by 23.4% during the 3rd quarter. Wellington Management Group LLP now owns 3,303,017 shares of the company’s stock valued at $40,594,000 after acquiring an additional 626,172 shares during the period. EP Wealth Advisors LLC purchased a new stake in Sonos in the third quarter worth approximately $251,000. Barclays PLC raised its stake in Sonos by 120.3% during the 3rd 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. Hohimer Wealth Management LLC purchased a new position in shares of Sonos in the 3rd quarter worth $148,000. Finally, GAMMA Investing LLC grew its stake in shares of Sonos by 50.1% during the 4th quarter. GAMMA Investing LLC now owns 4,048 shares of the company’s stock valued at $61,000 after purchasing an additional 1,352 shares during the period. Institutional investors own 85.82% of the company’s stock.

About Sonos

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.