Sonos (NASDAQ:SONO) Shares Gap Up – Still a Buy?

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 set a $18.00 price objective on shares of Sonos in a research report on Friday, February 7th.

Sonos Stock Performance

The company has a 50-day simple moving average of $14.09 and a two-hundred day simple moving average of $13.19. The firm has a market capitalization of $1.58 billion, a P/E ratio of -23.21 and a beta of 1.97.

Sonos (NASDAQ:SONO) last released its quarterly earnings results on Thursday, February 6th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.04. Sonos had a negative return on equity of 13.17% and a negative net margin of 4.73%. As a group, research analysts forecast that Sonos, Inc. will post -0.37 earnings per share for the current fiscal year.

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Barclays PLC increased its stake in shares of Sonos by 120.3% during the third quarter. Barclays PLC now owns 923,437 shares of the company’s stock valued at $11,350,000 after purchasing an additional 504,293 shares in the last quarter. Nisa Investment Advisors LLC increased its position in Sonos by 7,557.0% during the 4th quarter. Nisa Investment Advisors LLC now owns 156,049 shares of the company’s stock valued at $2,347,000 after buying an additional 154,011 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its stake in Sonos by 42.8% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 877,758 shares of the company’s stock valued at $10,788,000 after buying an additional 263,060 shares during the last quarter. KBC Group NV raised its stake in Sonos by 52.6% during the fourth quarter. KBC Group NV now owns 7,403 shares of the company’s stock valued at $111,000 after buying an additional 2,551 shares during the last quarter. Finally, Crestwood Capital Management L.P. bought a new stake in Sonos in the third quarter worth $922,000. 85.82% of the stock is owned by hedge funds and other 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.