The Majority of Analysts Are Still Bullish on Sonos, Inc. (SONO)

On Thursday, shares of Sonos, Inc. (NASDAQ:SONO) marked $10.66 per share versus a previous $10.53 closing price. With having a 1.23% gain, an insight into the fundamental values of Sonos, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. SONO showed a rise of 8.55% within its YTD performance, with highs and lows between $9.23 – $23.60 during the period of 52 weeks, compared to the simple moving average of -6.10% in the period of the last 200 days.

DA Davidson equity researchers changed the status of Sonos, Inc. (NASDAQ: SONO) shares to a “Buy” rating in the report published on April 2nd, 2019. Other analysts, including Morgan Stanley, also published their reports on SONO shares. Morgan Stanley repeated the rating from the previous report, marking SONO under “Overweight” rating, in the report published on January 28th, 2019. Additionally, SONO shares got another “Outperform” rating from RBC Capital Mkts, setting a target price of $25 on the company’s shares, according to the report published in August 27th, 2018. On the other hand, Morgan Stanley Initiated the “Equal-Weight” rating for SONO shares, as published in the report on August 27th, 2018. Jefferies seems to be going bullish on the price of SONO shares, based on the price prediction for SONO, indicating that the shares will jump to $23, giving the shares “Hold” rating based on their report from August 27th, 2018. Another “Buy” rating came from Goldman, providing a prediction for $23 price target according to the report published in August 27th, 2018.

Sonos, Inc. (SONO) Analysis

The present dividend yield for SONO owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period.However, in order for the company to be able to pay its dividends, just like it is the case with Sonos, Inc., the company needs to provide a healthy cash flow, currently at the value of 16.41. In addition, the growth of sales from quarter to quarter is recording 12.60%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Sonos, Inc. (SONO) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 5.10% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 2.00 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while SONO is currently recording an average of 985.40K in volumes. The volatility of the stock on monthly basis is set at 2.69%, while the weekly volatility levels are marked at 2.50%with -2.47% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $16.17, indicating growth from the present price of $10.66, which can represent yet another valuable research and analysis points that can help you decide whether to invest in SONO or pass.

What to Look for When Analyzing Sonos, Inc. Shares?

Sonos, Inc. (SONO) is based in the USA and it represents one of the well-known company operating with Consumer Goods sector. If you wish to compare SONO shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 296.11 for Sonos, Inc., while the value 39.78 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 0.04 is supported by the yearly ESP growth of -7.90%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.40%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 60.50% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in SONO Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in SONO in the recent period. That is how Lake Street Advisors Group LLC now has an increase position in SONO by — in the first quarter, owning 7.11 million shares of SONO stocks, with the value of $80.62 million after the purchase of an additional 7,109,220 shares during the last quarter. In the meanwhile, The Vanguard Group, Inc. also increased their stake in SONO shares changed 88.81% in the first quarter, which means that the company now owns 3.06 million shares of company, all valued at $34.71 million after the acquisition of additional 1,439,676 shares during the last quarter.

JPMorgan Investment Management, I acquired a new position in Sonos, Inc. during the first quarter, with the value of $22.19 million, and Spark Investment Management LLC increased their stake in the company’s shares by 429.41% in the first quarter, now owning 1,192,658 shares valued at $16.67 million after the acquisition of the additional 1.47 million shares during the last quarter. In the end, Two Sigma Investments LP increased their position by 95.14% during the first quarter, now owning 1.42 million SONO shares, now holding the value of $16.07 million in SONO with the purchase of the additional 1,282,800 shares during the period of the last quarter. At the present, 60.50% of SONO shares are in the ownership of institutional investors.