Sonos (NASDAQ:SONO) Shares Gap Up – Here’s Why

Shares of Sonos, Inc. (NASDAQ:SONO) gapped up prior to trading on Tuesday . The stock had previously closed at $12.51, but opened at $13.00. Sonos shares last traded at $13.01, with a volume of 199,818 shares.

Analyst Ratings Changes

Separately, Rosenblatt Securities reissued a “buy” rating and issued a $18.00 price target on shares of Sonos in a report on Friday, February 7th.

Sonos Stock Performance

The stock has a market capitalization of $1.58 billion, a P/E ratio of -23.21 and a beta of 1.97. The firm has a 50-day moving average price of $14.09 and a 200 day moving average price of $13.19.

Sonos (NASDAQ:SONO) last posted its quarterly earnings results on Thursday, February 6th. The company reported $0.40 EPS for the quarter, topping the consensus estimate 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 anticipate that Sonos, Inc. will post -0.37 earnings per share for the current fiscal year.

Sonos declared that its Board of Directors has approved a share buyback program on Monday, February 24th that authorizes the company to repurchase $150.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 10.1% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Coliseum Capital Management LLC boosted its position in Sonos by 50.3% during the 4th quarter. Coliseum Capital Management LLC now owns 10,734,013 shares of the company’s stock valued at $161,440,000 after buying an additional 3,590,782 shares during the period. Wellington Management Group LLP boosted its holdings 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 purchasing an additional 351,057 shares during the period. Jacobs Levy Equity Management Inc. grew its stake in shares of Sonos by 14.7% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 3,187,522 shares of the company’s stock worth $47,940,000 after purchasing an additional 408,479 shares during the last quarter. Schroder Investment Management Group grew its stake in shares of Sonos by 0.7% in the fourth quarter. Schroder Investment Management Group now owns 3,025,290 shares of the company’s stock worth $45,591,000 after purchasing an additional 21,126 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in 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 purchasing an additional 148,608 shares during the period. 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.