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

Morgan Stanley lowered shares of Sonos (NASDAQ:SONO) from an overweight rating to an underweight rating in a research note released on Thursday morning, MarketBeat.com reports. They currently have $11.00 price objective on the stock, down from their previous price objective of $25.00.

Separately, Craig Hallum downgraded shares of Sonos from a buy rating to a hold rating and lowered their target price for the stock from $25.00 to $10.00 in a report on Thursday, August 8th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of Hold and a consensus price target of $14.25.

Sonos Price Performance

Sonos stock opened at $12.15 on Thursday. Sonos has a 1 year low of $9.78 and a 1 year high of $19.76. The firm’s 50 day moving average price is $12.22 and its 200-day moving average price is $15.03. 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 released its earnings results on Wednesday, August 7th. The company reported $0.03 EPS for the quarter, hitting the consensus estimate of $0.03. Sonos had a negative net margin of 1.04% and a positive return on equity of 0.42%. The firm had revenue of $397.15 million for the quarter, compared to the consensus estimate of $391.23 million. During the same quarter in the previous year, the firm earned $0.02 earnings per share. The company’s quarterly revenue was up 6.4% compared to the same quarter last year. As a group, equities analysts expect that Sonos will post -0.29 EPS for the current year.

Insider Activity at Sonos

In related news, insider Shamayne Braman sold 6,438 shares of the company’s stock in a transaction on Friday, August 16th. The shares were sold at an average price of $11.56, for a total transaction of $74,423.28. Following the sale, the insider now owns 26,588 shares of the company’s stock, valued at $307,357.28. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. In related news, insider Shamayne Braman sold 6,438 shares of the company’s stock in a transaction on Friday, August 16th. The shares were sold at an average price of $11.56, for a total transaction of $74,423.28. Following the sale, the insider now owns 26,588 shares of the company’s stock, valued at $307,357.28. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Christopher Scott Mason sold 10,000 shares of the company’s stock in a transaction on Wednesday, July 17th. The shares were sold at an average price of $14.45, for a total transaction of $144,500.00. Following the sale, the insider now directly owns 122,009 shares in the company, valued at approximately $1,763,030.05. The disclosure for this sale can be found here. Insiders have sold a total of 17,343 shares of company stock valued at $232,498 over the last 90 days. 3.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Sonos

Several hedge funds and other institutional investors have recently made changes to their positions in SONO. Norges Bank purchased a new stake in shares of Sonos in the fourth quarter valued at $13,594,000. PNC Financial Services Group Inc. raised its stake in shares of Sonos by 7.7% in the fourth quarter. PNC Financial Services Group Inc. now owns 51,789 shares of the company’s stock valued at $888,000 after acquiring an additional 3,702 shares during the period. US Bancorp DE raised its stake in shares of Sonos by 2,273.3% in the fourth quarter. US Bancorp DE now owns 45,116 shares of the company’s stock valued at $773,000 after acquiring an additional 43,215 shares during the period. Capstone Investment Advisors LLC purchased a new stake in shares of Sonos in the fourth quarter valued at $472,000. Finally, Harvest Investment Services LLC purchased a new stake in shares of Sonos in the fourth quarter valued at $274,000. Hedge funds and other institutional investors own 85.82% of the company’s stock.

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.