Sonos Inc. [SONO] stock Downgrade by Morgan Stanley analyst, price target now $28

Sonos Inc. [NASDAQ: SONO] traded at a low on 11/16/22, posting a -5.39 loss after which it closed the day’ session at $16.84.

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The results of the trading session contributed to over 3744757 shares changing hands. Over the past one week, the price volatility of Sonos Inc. stands at 5.00% while the volatility over the past one month is 3.90%.

The market cap for SONO stock reached $2.00 billion, with 127.88 million shares outstanding and 125.50 million shares in the current float. Compared to the average trading volume of 2.19M shares, SONO reached a trading volume of 3744757 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 $23.20 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 2.10. 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.

Morgan Stanley have made an estimate for Sonos Inc. shares, keeping their opinion on the stock as Equal-Weight, with their previous recommendation back on June 15, 2022. While these analysts kept the previous recommendation, Jefferies raised their target price from $43 to $50. The new note on the price target was released on August 16, 2021, representing the official price target for Sonos Inc. stock. Previously, the target price had yet another raise from $17 to $37, while Goldman kept a Neutral rating on SONO stock.

The Average True Range (ATR) for Sonos Inc. is set at 0.73, with the Price to Sales ratio for SONO stock in the period of the last 12 months amounting to 1.12. The Price to Book ratio for the last quarter was 3.35, with the Price to Cash per share for the same quarter was set at 3.70. Price to Free Cash Flow for SONO in the course of the last twelve months was 43.15 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 11.01. With this latest performance, SONO shares gained by 14.56% in over the last four-week period, additionally sinking by -15.67% over the last 6 months – not to mention a drop of -51.27% 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 58.29, with the RSI for the last a single of trading hit 57.80, and the three-weeks RSI is set at 56.74 for Sonos Inc. [SONO]. The present Moving Average for the last 50 days of trading for this stock 15.16, while it was recorded at 17.24 for the last single week of trading, and 20.60 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 +10.64 and a Gross Margin at +47.18. Sonos Inc.’s Net Margin is presently recorded at +9.24.

Return on Total Capital for SONO is now 36.60, given the latest momentum, and Return on Invested Capital for the company is 32.72. Return on Equity for this stock inclined to 36.59, with Return on Assets sitting at 16.23. When it comes to the capital structure of this company, Sonos Inc. [SONO] has a Total Debt to Total Equity ratio set at 5.97. Additionally, SONO Total Debt to Total Capital is recorded at 5.63, with Total Debt to Total Assets ending up at 3.92. Long-Term Debt to Equity for the company is recorded at 5.97, with the Long-Term Debt to Total Capital now at 5.63.

Receivables Turnover for the company is 22.05 with a Total Asset Turnover recorded at a value of 1.76.Sonos Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.80.

Earnings analysis for Sonos Inc. [SONO]

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 -7.60%.

Insider trade positions for Sonos Inc. [SONO]

There are presently around $1,858 million, or 96.50% of SONO stock, in the hands of institutional investors. The top three institutional holders of SONO stocks are: BLACKROCK INC. with ownership of 19,568,040, which is approximately -7.866% of the company’s market cap and around 1.30% of the total institutional ownership; VANGUARD GROUP INC, holding 13,732,533 shares of the stock with an approximate value of $231.26 million in SONO stocks shares; and COLISEUM CAPITAL MANAGEMENT, LLC, currently with $121.08 million in SONO stock with ownership of nearly 32.357% of the company’s market capitalization.

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 138 institutional holders increased their position in Sonos Inc. [NASDAQ:SONO] by around 15,785,563 shares. Additionally, 166 investors decreased positions by around 22,199,164 shares, while 76 investors held positions by with 72,332,923 shares. The mentioned changes placed institutional holdings at 110,317,650 shares, according to the latest SEC report filing. SONO stock had 36 new institutional investments in for a total of 2,247,599 shares, while 69 institutional investors sold positions of 9,092,547 shares during the same period.


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