Sonos (NASDAQ:SONO) Shares Gap Up - Still a Buy?

Sonos, Inc. (NASDAQ:SONO - Get Free Report)'s share price gapped up before the market opened 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 changing hands.

Wall Street Analyst Weigh In

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

Sonos Stock Performance

The company's 50-day simple moving average is $14.01 and its 200 day simple moving average is $13.24. The company has a market cap of $1.55 billion, a PE ratio of -22.79 and a beta of 1.97.

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

Sonos declared that its Board of Directors has approved a share buyback program on Monday, February 24th that authorizes the company to buyback $150.00 million in shares. This buyback authorization authorizes the company to purchase up to 10.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board believes its stock is undervalued.

Institutional Trading of Sonos

Hedge funds have recently added to or reduced their stakes in the company. Creative Planning grew its holdings in Sonos by 16.3% during the 3rd quarter. Creative Planning now owns 29,488 shares of the company's stock worth $362,000 after acquiring an additional 4,135 shares in the last quarter. International Assets Investment Management LLC grew its stake in shares of Sonos by 927.0% during the third quarter. International Assets Investment Management LLC now owns 7,497 shares of the company's stock worth $92,000 after purchasing an additional 6,767 shares in the last quarter. New York State Teachers Retirement System grew its stake in shares of Sonos by 37.7% during the third quarter. New York State Teachers Retirement System now owns 42,859 shares of the company's stock worth $527,000 after purchasing an additional 11,735 shares in the last quarter. Harbor Capital Advisors Inc. increased its holdings in Sonos by 3.3% in the third quarter. Harbor Capital Advisors Inc. now owns 39,381 shares of the company's stock valued at $484,000 after buying an additional 1,267 shares during the last quarter. Finally, GFS Advisors LLC raised its stake in Sonos by 207.3% in the third quarter. GFS Advisors LLC now owns 100,000 shares of the company's stock valued at $1,229,000 after buying an additional 67,463 shares in the last quarter. Institutional investors and hedge funds own 85.82% of the company's stock.

About Sonos

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.