Sonos (NASDAQ:SONO) Downgraded by Morgan Stanley

Sonos (NASDAQ:SONO) was downgraded by research analysts at Morgan Stanley from an “overweight” rating to an “underweight” rating in a note issued to investors on Thursday, MarketBeat reports. They currently have a $11.00 price target on the stock, down from their previous price target of $25.00. Morgan Stanley’s target price points to a potential downside of 12.63% from the company’s previous close.

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

Sonos Stock Down 2.0 %

Shares of SONO opened at $12.59 on Thursday. Sonos has a 52-week low of $9.78 and a 52-week high of $19.76. The stock has a fifty day simple moving average of $12.29 and a two-hundred day simple moving average of $15.13. The company has a market capitalization of $1.55 billion, a PE ratio of -35.97 and a beta of 2.04.

Sonos (NASDAQ:SONO) last issued its earnings results on Wednesday, August 7th. The company reported $0.03 EPS for the quarter, hitting analysts’ consensus estimates of $0.03. Sonos had a negative net margin of 1.04% and a positive return on equity of 0.42%. The company had revenue of $397.15 million for the quarter, compared to the consensus estimate of $391.23 million. During the same period in the previous year, the firm earned $0.02 earnings per share. Sonos’s quarterly revenue was up 6.4% compared to the same quarter last year. As a group, equities analysts anticipate that Sonos will post -0.29 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Shamayne Braman sold 6,438 shares of the stock in a transaction dated Friday, August 16th. The stock was sold at an average price of $11.56, for a total transaction of $74,423.28. Following the transaction, the insider now owns 26,588 shares of the company’s stock, valued at approximately $307,357.28. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In other Sonos news, insider Shamayne Braman sold 6,438 shares of the stock in a transaction that occurred on Friday, August 16th. The shares were sold at an average price of $11.56, for a total transaction of $74,423.28. Following the sale, the insider now directly owns 26,588 shares in the company, valued at approximately $307,357.28. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Christopher Scott Mason sold 10,000 shares of the business’s stock in a transaction on Wednesday, July 17th. The stock was sold at an average price of $14.45, for a total transaction of $144,500.00. Following the completion of the transaction, the insider now owns 122,009 shares of the company’s stock, valued at approximately $1,763,030.05. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 25,073 shares of company stock valued at $346,129. 3.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sonos

Several hedge funds and other institutional investors have recently made changes to their positions in SONO. Norges Bank acquired a new stake in Sonos in the fourth quarter valued at approximately $13,594,000. PNC Financial Services Group Inc. grew its stake in shares of Sonos by 7.7% during the fourth quarter. PNC Financial Services Group Inc. now owns 51,789 shares of the company’s stock worth $888,000 after purchasing an additional 3,702 shares in the last quarter. US Bancorp DE increased its holdings in Sonos by 2,273.3% in the fourth quarter. US Bancorp DE now owns 45,116 shares of the company’s stock valued at $773,000 after buying an additional 43,215 shares during the last quarter. Capstone Investment Advisors LLC acquired a new stake in Sonos in the fourth quarter valued at $472,000. Finally, Harvest Investment Services LLC purchased a new stake in Sonos during the 4th quarter worth about $274,000. 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.