Sonos (NASDAQ:SONO) Stock Price Up 4.7% - Should You Buy?

Sonos, Inc. (NASDAQ:SONO - Get Free Report)'s share price traded up 4.7% during mid-day trading on Monday . The company traded as high as $12.44 and last traded at $12.50. 407,618 shares were traded during mid-day trading, a decline of 81% from the average session volume of 2,170,200 shares. The stock had previously closed at $11.93.

Analyst Ratings Changes

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

Sonos Trading Down 0.6 %

The stock has a fifty day simple moving average of $14.06 and a 200-day simple moving average of $13.20. The company has a market capitalization of $1.60 billion, a PE ratio of -23.65 and a beta of 1.97.

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

Sonos announced that its Board of Directors has authorized a share buyback plan on Monday, February 24th that permits the company to repurchase $150.00 million in shares. This repurchase authorization permits the company to buy up to 10.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Sonos

Hedge funds have recently modified their holdings of the business. Coliseum Capital Management LLC boosted its stake in Sonos by 50.3% during the 4th quarter. Coliseum Capital Management LLC now owns 10,734,013 shares of the company's stock worth $161,440,000 after purchasing an additional 3,590,782 shares during the period. Freestone Grove Partners LP purchased a new stake in shares of Sonos in the fourth quarter valued at about $18,125,000. Point72 Asset Management L.P. acquired a new stake in shares of Sonos during the fourth quarter worth about $13,057,000. Deroy & Devereaux Private Investment Counsel Inc. grew its holdings in shares of Sonos by 67.9% during the third quarter. Deroy & Devereaux Private Investment Counsel Inc. now owns 1,655,942 shares of the company's stock worth $20,352,000 after buying an additional 669,658 shares during the last quarter. Finally, Stadium Capital Management LLC purchased a new position in shares of Sonos during the third quarter worth about $8,105,000. 85.82% of the stock is currently owned by hedge funds and other institutional investors.

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.