Morgan Stanley Downgrades Sonos (NASDAQ:SONO) to Underweight

Sonos (NASDAQ:SONO) was downgraded by stock analysts at Morgan Stanley from an “overweight” rating to an “underweight” rating in a research note issued to investors on Thursday, MarketBeat.com reports. They presently have a $11.00 price target on the stock, down from their previous price target of $25.00. Morgan Stanley’s price target points to a potential downside of 9.47% from the company’s previous close.

Separately, Craig Hallum cut Sonos from a “buy” rating to a “hold” rating and dropped their target price for the company from $25.00 to $10.00 in a report on Thursday, August 8th. One research analyst has rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, Sonos has a consensus rating of “Hold” and a consensus price target of $14.25.

Sonos Trading Up 1.0 %

SONO opened at $12.15 on Thursday. The stock has a 50-day moving average price of $12.25 and a 200-day moving average price of $15.10. Sonos has a 12-month low of $9.78 and a 12-month high of $19.76. The stock has a market capitalization of $1.47 billion, a P/E ratio of -34.71 and a beta of 2.04.

Sonos (NASDAQ:SONO) last posted its quarterly earnings data on Wednesday, August 7th. The company reported $0.03 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.03. Sonos had a positive return on equity of 0.42% and a negative net margin of 1.04%. The firm had revenue of $397.15 million during the quarter, compared to analysts’ expectations of $391.23 million. During the same period in the prior year, the business earned $0.02 EPS. The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. On average, equities research analysts predict that Sonos will post -0.29 EPS for the current year.

Insider Buying and Selling at Sonos

In other news, insider Shamayne Braman sold 6,438 shares of the stock in a transaction that occurred on Friday, August 16th. The stock was sold at an average price of $11.56, for a total value of $74,423.28. Following the completion of the transaction, the insider now owns 26,588 shares of the company’s stock, valued at approximately $307,357.28. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, insider Nicholas Millington sold 7,730 shares of the stock in a transaction that occurred on Monday, July 1st. The stock was sold at an average price of $14.70, for a total value of $113,631.00. Following the completion of the transaction, the insider now owns 371,614 shares of the company’s stock, valued at approximately $5,462,725.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Shamayne Braman sold 6,438 shares of the company’s stock in a transaction that occurred on Friday, August 16th. The stock was sold at an average price of $11.56, for a total value of $74,423.28. Following the completion of the sale, the insider now owns 26,588 shares in the company, valued at approximately $307,357.28. The disclosure for this sale can be found here. Insiders sold 25,073 shares of company stock valued at $346,129 in the last 90 days. Insiders own 3.30% of the company’s stock.

Institutional Trading of Sonos

Several hedge funds and other institutional investors have recently made changes to their positions in SONO. ProShare Advisors LLC boosted its stake in Sonos by 4.6% during the 1st quarter. ProShare Advisors LLC now owns 24,973 shares of the company’s stock valued at $476,000 after purchasing an additional 1,092 shares during the last quarter. Mackenzie Financial Corp boosted its stake in Sonos by 6.2% during the 2nd quarter. Mackenzie Financial Corp now owns 21,075 shares of the company’s stock valued at $311,000 after purchasing an additional 1,233 shares during the last quarter. Sei Investments Co. boosted its stake in Sonos by 0.4% during the 1st quarter. Sei Investments Co. now owns 315,913 shares of the company’s stock valued at $6,021,000 after purchasing an additional 1,354 shares during the last quarter. Daiwa Securities Group Inc. boosted its stake in Sonos by 6.0% during the 2nd quarter. Daiwa Securities Group Inc. now owns 24,600 shares of the company’s stock valued at $363,000 after purchasing an additional 1,400 shares during the last quarter. Finally, WNY Asset Management LLC boosted its stake in Sonos by 7.5% during the 4th quarter. WNY Asset Management LLC now owns 20,715 shares of the company’s stock valued at $355,000 after purchasing an additional 1,450 shares during the last quarter. Hedge funds and other institutional investors own 85.82% of the company’s stock.

Sonos Company Profile

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.