Sonos (NASDAQ:SONO) Reaches New 1-Year Low – What’s Next?

Sonos, Inc. (NASDAQ:SONO) reached a new 52-week low on Wednesday . The company traded as low as $7.66 and last traded at $7.71, with a volume of 730330 shares trading hands. The stock had previously closed at $7.88.

Analyst Ratings Changes

A number of research analysts have weighed in on SONO shares. Jefferies Financial Group decreased their price objective on shares of Sonos from $19.00 to $13.00 and set a “buy” rating for the company in a research report on Monday, April 7th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $18.00 price target on shares of Sonos in a research note on Friday, February 7th.

Sonos Trading Down 2.3 %

The company has a market capitalization of $916.94 million, a PE ratio of -13.51 and a beta of 2.01. The company has a fifty day simple moving average of $11.44 and a 200-day simple moving average of $12.92.

Sonos (NASDAQ:SONO) last announced its quarterly earnings results on Thursday, February 6th. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.36 by $0.04. Sonos had a negative net margin of 4.73% and a negative return on equity of 13.17%. On average, equities analysts predict that Sonos, Inc. will post -0.37 EPS for the current fiscal year.

Sonos announced that its board has authorized a share buyback program on Monday, February 24th that permits the company to buyback $150.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 10.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other news, major shareholder Coliseum Capital Management, L purchased 62,506 shares of the company’s stock in a transaction dated Monday, April 7th. The shares were acquired at an average cost of $8.38 per share, for a total transaction of $523,800.28. Following the completion of the purchase, the insider now directly owns 12,118,088 shares in the company, valued at $101,549,577.44. The trade was a 0.52 % increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sonos

Several hedge funds and other institutional investors have recently bought and sold shares of SONO. Coliseum Capital Management LLC raised its stake in Sonos by 50.3% during the fourth quarter. Coliseum Capital Management LLC now owns 10,734,013 shares of the company’s stock worth $161,440,000 after purchasing an additional 3,590,782 shares during the period. Wellington Management Group LLP grew its position in shares of Sonos by 10.6% during the fourth quarter. Wellington Management Group LLP now owns 3,654,074 shares of the company’s stock worth $54,957,000 after acquiring an additional 351,057 shares during the last quarter. Jacobs Levy Equity Management Inc. boosted its position in Sonos by 14.7% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 3,187,522 shares of the company’s stock worth $47,940,000 after acquiring an additional 408,479 shares during the period. Schroder Investment Management Group increased its stake in shares of Sonos by 0.7% during the fourth quarter. Schroder Investment Management Group now owns 3,025,290 shares of the company’s stock valued at $45,591,000 after acquiring an additional 21,126 shares during the period. Finally, Dimensional Fund Advisors LP lifted its position in shares of Sonos by 5.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,687,007 shares of the company’s stock valued at $40,413,000 after acquiring an additional 148,608 shares during the last quarter. 85.82% of the stock is owned by institutional investors and hedge funds.

About Sonos

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.