The share price of Sonos Inc. (NASDAQ:SONO) rose to $22.80 per share on Thursday from $22.57. While Sonos Inc. has overperformed by 1.02%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, SONO fell by -31.01%, with highs and lows ranging from $42.57 to $17.43, whereas the simple moving average fell by -12.20% in the last 200 days.
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On June 15, 2022, Morgan Stanley Downgraded Sonos Inc. (NASDAQ: SONO) to Equal-Weight. A report published by Jefferies on August 16, 2021, Upgraded its rating to ‘Buy’ for SONO. Goldman also Upgraded SONO shares as ‘Neutral’, setting a target price of $37 on the company’s shares in a report dated February 12, 2021. Raymond James July 29, 2020d its ‘Strong Buy’ rating to ‘Mkt Perform’ for SONO, as published in its report on July 29, 2020. Goldman’s report from April 17, 2020 suggests a price prediction of $7.50 for SONO shares, giving the stock a ‘Sell’ rating. BofA/Merrill also rated the stock as ‘Neutral’.
Analysis of Sonos Inc. (SONO)
Further, the quarter-over-quarter increase in sales is 20.10%, showing a positive trend in the upcoming months.
To gain a thorough understanding of Sonos Inc.’s future performance, several well-rounded types of analysis and research techniques can be used, with equity being among the most crucial. The goal here is to ensure that your current return on equity of 22.50% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.60, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
It is also very valuable to look at average volume as an indicator of volatility for a stock, and SONO is recording an average volume of 2.44M. On a monthly basis, the volatility of the stock is set at 4.44%, whereas on a weekly basis, it is put at 3.70%, with a gain of 3.73% over the past seven days. Furthermore, long-term investors anticipate a median target price of $29.43, showing growth from the present price of $22.80, which can serve as yet another indication of whether SONO is worth investing in or should be passed over.
How Do You Analyze Sonos Inc. Shares?
A leading company in the Consumer Electronics sector, Sonos Inc. (SONO) is based in the USA. When comparing Sonos Inc. shares with other companies under Technology, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 23.19, there is a growth in quarterly earnings of -49.00%.
The number of employees owning shares of the company should also be considered in addition to the fundamentals. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 1.30%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 98.10% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in SONO shares?
The recent increase in stakes in SONO appears to be a result of several institutional investors and hedge funds increasing their positions. BlackRock Fund Advisors’s position in SONO has increased by 144.48% in the first quarter. The company now owns 18,882,689 shares of the stock, with a value of $340.64 million, following the purchase of 11,158,927 additional shares during the last quarter. The Vanguard Group, Inc. made another increased to its shares in SONO during the first quarter, upping its stake by 17.08%. During the last quarter, the company picked up 1,933,898 additional shares for a total stake of worth $239.17 million, bringing number of shares owned by the company to 13,257,637.
During the first quarter, American Century Investment Manag added a 1,401,467 position in SONO. SSgA Funds Management, Inc. purchased an additional 1.81 million shares in the last quarter, increasing its holdings by 76.66%, now holding 4.18 million shares worth $75.35 million. At the end of the first quarter, Morgan Stanley Smith Barney LLC increased its SONO holdings by 17.86% and now holds 4.07 million SONO shares valued at $73.4 million with the added 0.62 million shares during the period. SONO shares are owned by institutional investors to the tune of 98.10% at present.