Sonos (NASDAQ:SONO) Upgraded by Wall Street Zen to Buy Rating

Sonos (NASDAQ:SONO) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued to investors on Saturday.

A number of other analysts have also weighed in on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Sonos in a report on Thursday, January 22nd. Jefferies Financial Group boosted their price target on Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. Rosenblatt Securities restated a “buy” rating and set a $21.00 price objective on shares of Sonos in a research note on Monday, February 2nd. Finally, Morgan Stanley set a $18.00 target price on Sonos in a research note on Wednesday. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $20.00.

Sonos Price Performance

NASDAQ:SONO opened at $17.08 on Friday. Sonos has a 1-year low of $7.63 and a 1-year high of $19.82. The company has a 50-day moving average of $17.07 and a 200 day moving average of $15.75. The firm has a market cap of $2.06 billion, a PE ratio of -100.47 and a beta of 2.05.

Sonos (NASDAQ:SONO) last posted its earnings results on Tuesday, February 3rd. The company reported $0.93 EPS for the quarter, beating analysts’ consensus estimates of $0.85 by $0.08. Sonos had a negative net margin of 1.22% and a positive return on equity of 0.82%. The business had revenue of $545.66 million for the quarter, compared to the consensus estimate of $536.93 million. During the same quarter last year, the firm posted $0.64 EPS. The company’s revenue for the quarter was down .9% on a year-over-year basis. Sell-side analysts anticipate that Sonos will post -0.37 EPS for the current fiscal year.

Insider Buying and Selling

In other Sonos news, insider Edward P. Lazarus sold 12,000 shares of the firm’s stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $19.00, for a total value of $228,000.00. Following the completion of the sale, the insider owned 423,219 shares of the company’s stock, valued at approximately $8,041,161. This trade represents a 2.76% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Coliseum Capital Management, L acquired 494,719 shares of the business’s stock in a transaction dated Wednesday, February 4th. The shares were bought at an average price of $15.50 per share, for a total transaction of $7,668,144.50. Following the acquisition, the insider owned 15,424,999 shares of the company’s stock, valued at approximately $239,087,484.50. This represents a 3.31% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 795,398 shares of company stock worth $12,564,091 in the last ninety days. 1.25% of the stock is owned by insiders.

Institutional Trading of Sonos

A number of institutional investors have recently bought and sold shares of the stock. Y Intercept Hong Kong Ltd lifted its stake in Sonos by 620.4% during the 2nd quarter. Y Intercept Hong Kong Ltd now owns 185,149 shares of the company’s stock valued at $2,001,000 after acquiring an additional 159,448 shares during the period. Teacher Retirement System of Texas raised its holdings in shares of Sonos by 25.7% during the second quarter. Teacher Retirement System of Texas now owns 22,158 shares of the company’s stock worth $240,000 after purchasing an additional 4,530 shares during the last quarter. SG Americas Securities LLC acquired a new position in Sonos during the third quarter valued at $3,658,000. Allianz Asset Management GmbH boosted its holdings in Sonos by 975.4% in the second quarter. Allianz Asset Management GmbH now owns 203,242 shares of the company’s stock valued at $2,197,000 after purchasing an additional 184,342 shares during the last quarter. Finally, Bryce Point Capital LLC acquired a new stake in Sonos during the 2nd quarter worth about $182,000. 85.82% of the stock is currently owned by institutional investors and hedge funds.

More Sonos News

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Q1 earnings beat and margin/strategy message — Sonos reported stronger-than-expected revenue and EPS, highlighted margin improvement and product-led growth; analysts and press note this as the main catalyst for the stock move. Why Sonos (SONO) Is Up 6.8%
• Positive Sentiment: Shares gap up after earnings — coverage noting the post-earnings gap and investor reaction supports near-term momentum. Sonos Shares Gap Up Following Earnings Beat
• Positive Sentiment: New product launch (Amp Multi) — management emphasized new hardware that targets more complex audio setups, supporting future revenue and ecosystem expansion. This underpins the bullish interpretation of the quarter. Sonos is back with new hardware
• Positive Sentiment: Reliability and customer focus restored — company messaging about fixing reliability issues and refocusing on customer advocacy should reduce churn and help long-term brand value. With reliability restored, Sonos focuses on customer advocacy
• Neutral Sentiment: Positive product reviews — editorial reviews (e.g., Sonos Ace headphones and Era 100) praise product quality, supporting brand premium but not an immediate revenue signal. Are the Sonos Ace still worth it in 2026?
• Neutral Sentiment: Retail promotions and flash sales — multiple outlets highlight discounts on Era 100, Arc Ultra + Sub 4, and Ace headphones for events (Valentine’s / game day). Promotions can drive volume but timing/scale matter for quarterly results. Save $550 Off the Sonos Arc Ultra
• Negative Sentiment: Dealer clearance & record-low pricing — reports that Amazon and others are clearing out Era 100 units and Ace headphones have hit record low prices could pressure ASPs and margins if discounts persist or expand. This is the principal downside risk investors will watch. Sonos Era 100 Hits Record Low
• Negative Sentiment: Frequent promotional cadence — sustained discounting across core products (earbuds, speakers, soundbars) can boost near-term unit sales but erode gross margins and brand premium if prolonged. Sonos Ace headphones drop to a record low

Sonos Company Profile

Sonos, Inc is a consumer electronics company specializing in wireless home audio systems. The company’s core business revolves around designing, developing and manufacturing smart speakers and soundbars that deliver high-fidelity audio and seamless multi-room listening experiences. Sonos products connect via Wi-Fi or Bluetooth and integrate with popular streaming services, enabling users to control music and other audio content through a dedicated mobile app, voice assistants or traditional controls.

Sonos offers a diversified product lineup that includes compact speakers such as Sonos One and Sonos Roam, premium models like Sonos Five and Sonos Move, home theater solutions including Sonos Beam and Sonos Arc, as well as accessories such as the Sonos Sub and Sonos Amp.