why Sonos Inc. [SONO] is a Good Choice for Investors After New Price Target of $21.50

Sonos Inc. [NASDAQ: SONO] jumped around 0.52 points on Thursday, while shares priced at $22.81 at the close of the session, up 2.33%. The company report on November 19, 2020 that Sonos Announces $50 Million Stock Repurchase Program and Completion of Previous Stock Repurchase Program.

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Sonos, Inc. (Nasdaq: SONO) announced that its Board of Directors has authorized a common stock repurchase program of up to $50 million.

Sonos completed its previous $50 million share repurchase program during the fourth quarter of fiscal 2020 pursuant to which it purchased 3.8 million shares.

Sonos Inc. stock is now 46.03% up from its year-to-date (YTD) trading value. SONO Stock saw the intraday high of $23.28 and lowest of $22.26 per share. The company’s 52-week high price is 23.08, which means current price is +246.66% above from all time high which was touched on 12/03/20.

Compared to the average trading volume of 4.45M shares, SONO reached a trading volume of 4466979 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Sonos Inc. [SONO]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SONO shares is $21.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SONO stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BofA Securities have made an estimate for Sonos Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 15, 2020. The new note on the price target was released on July 29, 2020, representing the official price target for Sonos Inc. stock. Previously, the target price had yet another drop from $20 to $7.50, while Goldman kept a Sell rating on SONO stock.

The Average True Range (ATR) for Sonos Inc. is set at 1.08, with the Price to Sales ratio for SONO stock in the period of the last 12 months amounting to 1.95. The Price to Book ratio for the last quarter was 8.51, with the Price to Cash per share for the same quarter was set at 3.59. Price to Free Cash Flow for SONO in the course of the last twelve months was 20.07 with Quick ratio for the last quarter at 1.20.

How has SONO stock performed recently?

Sonos Inc. [SONO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.79. With this latest performance, SONO shares gained by 49.87% in over the last four-week period, additionally plugging by 106.43% over the last 6 months – not to mention a rise of 70.48% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SONO stock in for the last two-week period is set at 77.47, with the RSI for the last a single of trading hit 80.81, and the three-weeks RSI is set at 74.03 for Sonos Inc. [SONO]. The present Moving Average for the last 50 days of trading for this stock 16.58, while it was recorded at 22.15 for the last single week of trading, and 13.21 for the last 200 days.

Sonos Inc. [SONO]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Sonos Inc. [SONO] shares currently have an operating margin of +1.10 and a Gross Margin at +43.12. Sonos Inc.’s Net Margin is presently recorded at -1.52.

Return on Total Capital for SONO is now 4.17, given the latest momentum, and Return on Invested Capital for the company is -5.98. Return on Equity for this stock declined to -6.95, with Return on Assets sitting at -2.55. When it comes to the capital structure of this company, Sonos Inc. [SONO] has a Total Debt to Total Equity ratio set at 28.94. Additionally, SONO Total Debt to Total Capital is recorded at 22.44, with Total Debt to Total Assets ending up at 10.56. Long-Term Debt to Equity for the company is recorded at 23.04, with the Long-Term Debt to Total Capital now at 17.87.

Reflecting on the efficiency of the workforce at the company, Sonos Inc. [SONO] managed to generate an average of -$14,096 per employee. Receivables Turnover for the company is 16.82 with a Total Asset Turnover recorded at a value of 1.68.Sonos Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.70.

Earnings analysis for Sonos Inc. [SONO]

With the latest financial reports released by the company, Sonos Inc. posted 0.6/share EPS, while the average EPS was predicted by analysts to be reported at 0.48/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 25.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SONO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Sonos Inc. go to 26.60%.

Insider trade positions for Sonos Inc. [SONO]

There are presently around $1,648 million, or 65.10% of SONO stock, in the hands of institutional investors. The top three institutional holders of SONO stocks are: VANGUARD GROUP INC with ownership of 8,560,311, which is approximately 16.363% of the company’s market cap and around 0.60% of the total institutional ownership; BLACKROCK INC., holding 5,442,142 shares of the stock with an approximate value of $124.14 million in SONO stocks shares; and INDEX VENTURE GROWTH ASSOCIATES I LTD, currently with $86.41 million in SONO stock with ownership of nearly 0% of the company’s market capitalization.

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Positions in Sonos Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 114 institutional holders increased their position in Sonos Inc. [NASDAQ:SONO] by around 14,007,489 shares. Additionally, 113 investors decreased positions by around 15,399,594 shares, while 30 investors held positions by with 42,834,729 shares. The mentioned changes placed institutional holdings at 72,241,812 shares, according to the latest SEC report filing. SONO stock had 42 new institutional investments in for a total of 4,434,087 shares, while 41 institutional investors sold positions of 5,733,429 shares during the same period.

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