Sonos (NASDAQ:SONO) Stock Price Crosses Below Fifty Day Moving Average – Time to Sell?

Sonos, Inc. (NASDAQ:SONO) crossed below its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $16.63 and traded as low as $15.98. Sonos shares last traded at $16.17, with a volume of 1,533,576 shares.

Analyst Ratings Changes

SONO has been the subject of a number of analyst reports. Wall Street Zen lowered Sonos from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 22nd. Rosenblatt Securities restated a “buy” rating and issued a $21.00 price objective on shares of Sonos in a research note on Thursday, July 30th. Finally, Weiss Ratings upgraded Sonos from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, October 13th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $20.00.

Sonos Price Performance

The firm’s 50 day moving average price is $16.63 and its 200-day moving average price is $15.28. The stock has a market cap of $1.91 billion, a P/E ratio of 35.93 and a beta of 1.88.

Sonos (NASDAQ:SONO) last announced its earnings results on Wednesday, July 29th. The company reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.23. The company had revenue of $375.26 million during the quarter, compared to analyst estimates of $365.65 million. Sonos had a net margin of 3.82% and a return on equity of 19.10%. The firm’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.03) earnings per share. On average, analysts expect that Sonos, Inc. will post 0.69 earnings per share for the current year.

Insider Activity at Sonos

In related news, Director Karen Boone sold 46,766 shares of the stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $18.13, for a total value of $847,867.58. Following the sale, the director directly owned 69,271 shares of the company’s stock, valued at $1,255,883.23. This represents a 40.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.25% of the company’s stock.

Institutional Investors Weigh In On Sonos

A number of hedge funds have recently made changes to their positions in SONO. BlackRock Inc. acquired a new stake in shares of Sonos during the 2nd quarter valued at about $248,067,000. Arrowstreet Capital Limited Partnership lifted its position in shares of Sonos by 2.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 3,307,363 shares of the company’s stock worth $44,319,000 after purchasing an additional 90,997 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Sonos by 27.0% in the first quarter. Dimensional Fund Advisors LP now owns 2,384,430 shares of the company’s stock valued at $31,949,000 after buying an additional 506,566 shares during the period. Renaissance Technologies LLC raised its stake in Sonos by 258.8% during the 1st quarter. Renaissance Technologies LLC now owns 1,706,501 shares of the company’s stock worth $22,867,000 after buying an additional 1,230,900 shares during the period. Finally, Systematic Financial Management LP raised its holdings in Sonos by 10.7% during the first quarter. Systematic Financial Management LP now owns 1,306,859 shares of the company’s stock worth $17,512,000 after acquiring an additional 126,760 shares in the last quarter. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

Sonos Company Profile

Sonos, Inc develops and sells connected audio products and software for the home. Its offerings are designed to work together over wireless networks, allowing users to play music and other audio in individual rooms or across multiple rooms through the Sonos app and compatible streaming services.

The company’s product portfolio includes wireless home speakers, portable speakers, soundbars, subwoofers and other home-theater components. Sonos also offers headphones, including the Sonos Ace, as well as software features such as voice control, multiroom audio management and integration with third-party music and media platforms.

Founded in 2002 and headquartered in Santa Barbara, California, Sonos sells its products through its website, company-operated stores and third-party retailers.