Intech Investment Management LLC has reduced its stake in Sonos, Inc. (NASDAQ:SONO) by 18.0% during the second quarter of 2023, as disclosed in its recent Form 13F filing with the U.S. Securities and Exchange Commission (SEC). The firm now holds 124,007 shares of Sonos after selling 27,145 shares in the quarter, with its holdings valued at approximately $1.34 million at the end of this period.
Other institutional investors have also adjusted their positions in Sonos recently. For instance, AlphaQuest LLC acquired a new stake in the company during the first quarter, valued at $29,000. Nisa Investment Advisors LLC increased its holdings by 65.6% during the second quarter, bringing its total to 3,203 shares, valued at $35,000. Farther Finance Advisors LLC significantly raised its stake by 222.7%, now owning 3,714 shares worth $40,000. GAMMA Investing LLC also boosted its holdings by 96.3%, acquiring an additional 2,961 shares to reach a total of 6,035 shares, valued at $65,000. Additionally, Headlands Technologies LLC increased its stake by 38.8%, now holding 7,760 shares worth $83,000. Overall, institutional investors control 85.82% of Sonos’s stock.
Insider Transactions and Company Performance
In related news, Sonos’s CEO, Thomas Conrad, purchased 62,325 shares on November 17, 2023, at an average price of $16.17 per share, totaling approximately $1.01 million. Following this transaction, Conrad’s direct ownership in Sonos increased to 305,103 shares, valued at about $4.93 million, reflecting a 25.67% rise in his ownership.
Sonos’s recent earnings report, released on November 5, 2023, revealed a loss of ($0.06) earnings per share (EPS), falling short of analysts’ expectations of $0.05 by ($0.11). The company recorded a negative net margin of 4.24% and a negative return on equity of 11.66%. Revenue for the quarter was $287.90 million, significantly below the forecasted $535.43 million. Despite the loss, revenue represented a 12.7% increase compared to the same quarter last year.
Looking ahead, Sonos has provided guidance for Q1 2026, with analysts predicting an average EPS of ($0.37) for the current year.
Analyst Ratings and Market Outlook
Several analysts have offered insights into Sonos’s market position. Morgan Stanley set a price target of $17.00 and maintained an “equal weight” rating. Weiss Ratings reiterated a “sell (d-)” rating on the stock. Conversely, Rosenblatt Securities raised their price target from $17.00 to $21.00 and issued a “buy” rating. Wall Street Zen upgraded Sonos from a “hold” to a “buy” rating, while two analysts currently suggest a buy, one a hold, and one a sell.
Data from MarketBeat indicates that Sonos has an average rating of “hold” among analysts, with a consensus price target set at $17.00.
About Sonos, Inc.: The company, which operates globally, designs, develops, manufactures, and sells audio products and services across the Americas, Europe, the Middle East, Africa, and Asia Pacific. Sonos offers a range of wireless, portable, and home theater speakers, as well as components and accessories, distributed through approximately 10,000 retail outlets, including custom home audio installers and e-commerce platforms.
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