Sonos (NASDAQ:SONO) Upgraded at Zacks Research

Zacks Research upgraded shares of Sonos (NASDAQ:SONO) from a hold rating to a strong-buy rating in a report issued on Monday,Zacks.com reports.

Several other equities research analysts also recently commented on SONO. Rosenblatt Securities reissued a “buy” rating and issued a $21.00 price objective on shares of Sonos in a report on Monday, February 2nd. Morgan Stanley set a $18.00 price target on shares of Sonos in a research report on Wednesday, February 4th. Wall Street Zen raised shares of Sonos from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Jefferies Financial Group boosted their price objective on shares of Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a research note on Monday, January 5th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Sonos in a report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Sonos has an average rating of “Moderate Buy” and an average price target of $20.00.

Sonos Price Performance

SONO opened at $16.50 on Monday. The company’s 50 day simple moving average is $16.96 and its 200-day simple moving average is $15.90. Sonos has a one year low of $7.63 and a one year high of $19.82. The stock has a market capitalization of $1.99 billion, a P/E ratio of -97.06 and a beta of 2.05.

Sonos (NASDAQ:SONO) last announced its quarterly earnings data on Tuesday, February 3rd. The company reported $0.93 earnings per share for the quarter, beating the consensus estimate 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 analyst estimates of $536.93 million. During the same period in the prior year, the business posted $0.64 earnings per share. Sonos’s revenue was down .9% compared to the same quarter last year. As a group, analysts anticipate that Sonos will post -0.37 EPS for the current year.

Insider Activity

In other news, insider Edward P. Lazarus sold 12,000 shares of the business’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $19.00, for a total transaction of $228,000.00. Following the completion of the sale, the insider directly owned 423,219 shares of the company’s stock, valued at $8,041,161. The trade was a 2.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, major shareholder Coliseum Capital Management, L acquired 494,719 shares of the stock in a transaction dated Wednesday, February 4th. The stock was bought at an average cost of $15.50 per share, with a total value of $7,668,144.50. Following the completion of the purchase, the insider owned 15,424,999 shares of the company’s stock, valued at approximately $239,087,484.50. The trade was a 3.31% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders have purchased 795,398 shares of company stock worth $12,564,091. Company insiders own 1.25% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Hantz Financial Services Inc. boosted its position in Sonos by 307.9% during the fourth quarter. Hantz Financial Services Inc. now owns 1,762 shares of the company’s stock valued at $31,000 after purchasing an additional 1,330 shares during the last quarter. Nisa Investment Advisors LLC increased its stake in shares of Sonos by 65.6% during the second quarter. Nisa Investment Advisors LLC now owns 3,203 shares of the company’s stock worth $35,000 after purchasing an additional 1,269 shares during the period. Northwestern Mutual Wealth Management Co. lifted its holdings in Sonos by 699.6% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,055 shares of the company’s stock worth $36,000 after purchasing an additional 1,798 shares during the last quarter. Daiwa Securities Group Inc. bought a new stake in Sonos in the 4th quarter valued at $50,000. Finally, Quarry LP grew its holdings in Sonos by 485.8% in the 3rd quarter. Quarry LP now owns 3,251 shares of the company’s stock valued at $51,000 after buying an additional 2,696 shares in the last quarter. Institutional investors and hedge funds own 85.82% of the company’s stock.

Key Sonos News

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Analyst upgrade — Zacks upgraded Sonos from “hold” to “strong-buy,” which supports a more constructive near-term view from the sell side and can attract buying interest. Zacks Research Upgrade
• Positive Sentiment: Monetization & distribution boost — Audacy was named Sonos Radio’s exclusive U.S. sales partner, giving Sonos a third-party sales engine to grow ad revenue and scale its streaming/radio business faster. This could help diversify revenue beyond hardware. RBR: Audacy Partnership
• Neutral Sentiment: Retail expansion — Sonos opened its first Thailand store (Bangkok/EMSPHERE), signaling continued international retail expansion but likely small near-term revenue impact. Bangkok Post: Thailand Store
• Neutral Sentiment: Analyst/market digging into story — Coverage and commentary pieces are reframing Sonos’s narrative (hardware + services), and the company’s recent Q4 beat has prompted analyst questions about margins, services growth and capital allocation. These are mixed near-term for the stock. Yahoo Finance: Narrative Shift Yahoo: Analyst Questions
• Neutral Sentiment: Promotions & price cuts — Multiple retailers and outlets are running sizable discounts (Beam Gen 2, Arc, Era 100, Ace headphones), which can boost unit sales but may pressure margins and mix. Digital Trends: Beam Gen 2 Deal Kotaku: Era 100 Clearance
• Negative Sentiment: Profitability & guidance risk — Despite a recent EPS beat, Sonos remains barely profitable on the quarter and reported a modest y/y revenue decline; sell-side consensus expects negative full-year EPS, keeping investors cautious about near-term earnings. (Company Q4 disclosure / sell-side consensus)
• Negative Sentiment: Margin & inventory signal — Heavy discounting and clearance activity raise questions about channel inventory and gross-margin pressure, which can explain short-term selling pressure despite distribution or services progress. IGN: Arc Sale

About Sonos

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.