Sonos (NASDAQ:SONO) Downgraded to “Underweight” at Morgan Stanley

Sonos (NASDAQ:SONO) was downgraded by Morgan Stanley from an “overweight” rating to an “underweight” rating in a research report issued to clients and investors on Thursday, MarketBeat Ratings reports. They currently have a $11.00 price target on the stock, down from their prior price target of $25.00. Morgan Stanley’s price objective indicates a potential downside of 9.47% from the company’s current price.

Separately, Craig Hallum cut Sonos from a “buy” rating to a “hold” rating and decreased their target price for the stock 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 issued a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, Sonos presently has an average rating of “Hold” and a consensus price target of $14.25.

Sonos Stock Performance

Shares of Sonos stock opened at $12.15 on Thursday. Sonos has a one year low of $9.78 and a one year high of $19.76. The stock’s fifty day moving average is $12.25 and its 200 day moving average is $15.10. The stock has a market cap of $1.47 billion, a P/E ratio of -34.71 and a beta of 2.04.

Sonos (NASDAQ:SONO) last announced 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 positive return on equity of 0.42% and a negative net margin of 1.04%. The company had revenue of $397.15 million for the quarter, compared to analysts’ expectations of $391.23 million. During the same period last year, the firm earned $0.02 EPS. Sonos’s revenue for the quarter was up 6.4% compared to the same quarter last year. Analysts predict that Sonos will post -0.29 EPS for the current year.

Insider Activity

In related news, insider Christopher Scott Mason sold 10,000 shares of the business’s stock in a transaction dated Wednesday, July 17th. The stock was sold at an average price of $14.45, for a total value of $144,500.00. Following the sale, the insider now directly owns 122,009 shares in the company, valued at $1,763,030.05. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In related news, insider Nicholas Millington sold 7,730 shares of the business’s stock in a transaction dated Monday, July 1st. The stock was sold at an average price of $14.70, for a total value of $113,631.00. Following the sale, the insider now directly owns 371,614 shares in the company, valued at $5,462,725.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Christopher Scott Mason sold 10,000 shares of the business’s stock in a transaction dated Wednesday, July 17th. The stock was sold at an average price of $14.45, for a total value of $144,500.00. Following the completion of the sale, the insider now owns 122,009 shares in the company, valued at $1,763,030.05. The disclosure for this sale can be found here. Insiders have sold 25,073 shares of company stock worth $346,129 over the last ninety days. Corporate insiders own 3.30% of the company’s stock.

Institutional Investors Weigh In On Sonos

Several large investors have recently added to or reduced their stakes in the stock. ProShare Advisors LLC increased its stake in Sonos by 4.6% during the first quarter. ProShare Advisors LLC now owns 24,973 shares of the company’s stock worth $476,000 after acquiring an additional 1,092 shares during the last quarter. Mackenzie Financial Corp increased its stake in Sonos by 6.2% during the second quarter. Mackenzie Financial Corp now owns 21,075 shares of the company’s stock worth $311,000 after acquiring an additional 1,233 shares during the last quarter. Sei Investments Co. grew its stake in shares of Sonos by 0.4% during the first quarter. Sei Investments Co. now owns 315,913 shares of the company’s stock valued at $6,021,000 after buying an additional 1,354 shares during the last quarter. Daiwa Securities Group Inc. grew its stake in shares of Sonos by 6.0% during the second quarter. Daiwa Securities Group Inc. now owns 24,600 shares of the company’s stock valued at $363,000 after buying an additional 1,400 shares during the last quarter. Finally, WNY Asset Management LLC grew its stake in shares of Sonos by 7.5% during the fourth quarter. WNY Asset Management LLC now owns 20,715 shares of the company’s stock valued at $355,000 after buying an additional 1,450 shares during the last quarter. 85.82% of the stock is owned by institutional investors.

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.