Sonos (NASDAQ:SONO) Shares Gap Up - Time to Buy?

Sonos, Inc. (NASDAQ:SONO - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $12.51, but opened at $13.00. Sonos shares last traded at $13.01, with a volume of 199,818 shares.

Analyst Upgrades and Downgrades

Separately, Rosenblatt Securities reaffirmed a "buy" rating and issued a $18.00 price target on shares of Sonos in a research note on Friday, February 7th.

Sonos Stock Performance

The firm has a market capitalization of $1.57 billion, a P/E ratio of -23.19 and a beta of 1.97. The stock has a 50-day simple moving average of $14.01 and a two-hundred day simple moving average of $13.21.

Sonos (NASDAQ:SONO - Get Free Report) last released its quarterly earnings data on Thursday, February 6th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.36 by $0.04. Sonos had a negative return on equity of 13.17% and a negative net margin of 4.73%. As a group, research analysts expect that Sonos, Inc. will post -0.37 EPS for the current year.

Sonos announced that its Board of Directors has authorized a stock repurchase program on Monday, February 24th that allows the company to repurchase $150.00 million in shares. This repurchase authorization allows the company to buy up to 10.1% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On Sonos

Institutional investors have recently bought and sold shares of the business. Jefferies Financial Group Inc. lifted its holdings in Sonos by 57.4% during the fourth quarter. Jefferies Financial Group Inc. now owns 16,011 shares of the company's stock worth $241,000 after buying an additional 5,838 shares during the period. Mackenzie Financial Corp raised its position in shares of Sonos by 153.4% in the 4th quarter. Mackenzie Financial Corp now owns 89,993 shares of the company's stock worth $1,353,000 after acquiring an additional 54,475 shares in the last quarter. Public Employees Retirement System of Ohio lifted its stake in shares of Sonos by 2,283.5% during the 4th quarter. Public Employees Retirement System of Ohio now owns 44,071 shares of the company's stock worth $663,000 after purchasing an additional 42,222 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Sonos by 26.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 375,614 shares of the company's stock valued at $5,649,000 after purchasing an additional 77,765 shares in the last quarter. Finally, Systematic Financial Management LP boosted its position in Sonos by 6.5% during the fourth quarter. Systematic Financial Management LP now owns 969,518 shares of the company's stock valued at $14,582,000 after purchasing an additional 59,164 shares in the last quarter. 85.82% of the stock is owned by hedge funds and other institutional investors.

Sonos Company Profile

Sonos, Inc, together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website.