Sonos Inc. (NASDAQ: SONO) stock fell -3.91% on Wednesday to $14.49 against a previous-day closing price of $15.08. With 2.56 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.84 million shares. During the session, the Consumer Electronics company that operates in wider Technology sector, reached to the highest price of $15.09 whereas the lowest price it dropped to was $14.48. The 52-week range on SONO shows that it touched its highest point at $24.56 and its lowest point at $13.65 during that stretch. It currently has a 1-year price target of $22.45. Beta for the stock currently stands at 1.88.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SONO was down-trending over the past week, with a drop of -4.55%, but this was down by -28.59% over a month. Three-month performance dropped to -26.41% while six-month performance fell -15.46%. The stock lost -30.87% in the past year, while it has lost -14.26% so far this year. A look at the trailing 12-month EPS for SONO yields -0.17 with Next year EPS estimates of 0.32. For the next quarter, that number is -0.17. This implies an EPS growth rate of -56.70% for this year and 276.19% for next year. EPS is expected to grow by 6.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 40.00%.
Float and Shares Shorts:
At present, 127.95 million SONO shares are outstanding with a float of 124.59 million shares on hand for trading. On Apr 27, 2023, short shares totaled 11.79 million, which was 9.26% higher than short shares on Mar 30, 2023. In addition to Mr. Patrick Spence as the firm’s CEO, Pres & Director, Mr. Edward P. Lazarus serves as its CFO, Chief Legal Officer & Corp. Sec.
Through their ownership of 89.80% of SONO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 50.96% of SONO, in contrast to 38.27% held by mutual funds. Shares owned by individuals account for 15.75%. As the largest shareholder in SONO with 14.71% of the stake, BlackRock Fund Advisors holds 18,730,886 shares worth 18,730,886. A second-largest stockholder of SONO, The Vanguard Group, Inc., holds 13,865,686 shares, controlling over 10.89% of the firm’s shares. Coliseum Capital Management LLC is the third largest shareholder in SONO, holding 7,244,978 shares or 5.69% stake. With a 7.26% stake in SONO, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 9,250,526 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.09% of SONO stock, is the second-largest Mutual Fund holder. It holds 3,934,065 shares valued at 83.17 million. Vanguard Small Cap Index Fund holds 2.62% of the stake in SONO, owning 3,331,907 shares worth 70.44 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2023, SONO reported revenue of $371.78M and operating income of $6.96M. The EBITDA in the recently reported quarter was -$2.47M and diluted EPS was -$0.00.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SONO since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With SONO analysts setting a high price target of $24.00 and a low target of $19.00, the average target price over the next 12 months is $22.18. Based on these targets, SONO could surge 65.63% to reach the target high and rise by 31.12% to reach the target low. Reaching the average price target will result in a growth of 53.07% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded SONO stock several times over the past three months with 6 Buys and 4 Sells. In these transactions, 60,066 shares were bought while 15,507 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 1,135,639 while 687,301 shares were sold.