Sonos (NASDAQ:SONO) Raised to Buy at Wall Street Zen

Sonos (NASDAQ:SONO) was upgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday.

SONO has been the topic of several other reports. Morgan Stanley set a $18.00 target price on shares of Sonos in a research note on Wednesday. Jefferies Financial Group increased their price target on Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. Weiss Ratings reissued a “sell (d-)” rating on shares of Sonos in a report on Thursday, January 22nd. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $21.00 target price on shares of Sonos in a research note on Monday, February 2nd. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $20.00.

Sonos Price Performance

Shares of NASDAQ SONO opened at $17.08 on Friday. The stock has a market capitalization of $2.06 billion, a price-to-earnings ratio of -100.47 and a beta of 2.05. The firm’s 50 day simple moving average is $17.07 and its 200-day simple moving average is $15.75. Sonos has a 12 month low of $7.63 and a 12 month high of $19.82.

Sonos (NASDAQ:SONO) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $0.93 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.85 by $0.08. The firm had revenue of $545.66 million for the quarter, compared to the consensus estimate of $536.93 million. Sonos had a negative net margin of 1.22% and a positive return on equity of 0.82%. The firm’s quarterly revenue was down .9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.64 earnings per share. Analysts anticipate that Sonos will post -0.37 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Thomas Conrad purchased 62,325 shares of the stock in a transaction dated Monday, November 17th. The shares were purchased at an average cost of $16.17 per share, with a total value of $1,007,795.25. Following the completion of the purchase, the chief executive officer directly owned 305,103 shares of the company’s stock, valued at approximately $4,933,515.51. The trade was a 25.67% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, major shareholder Coliseum Capital Management, L acquired 26,824 shares of Sonos stock in a transaction that occurred on Friday, February 6th. The stock was purchased at an average cost of $16.49 per share, with a total value of $442,327.76. Following the completion of the purchase, the insider owned 15,663,353 shares in the company, valued at $258,288,690.97. The trade was a 0.17% increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders bought 795,398 shares of company stock worth $12,564,091. Corporate insiders own 1.25% of the company’s stock.

Institutional Investors Weigh In On Sonos

A number of large investors have recently modified their holdings of the business. Nisa Investment Advisors LLC raised its position in shares of Sonos by 65.6% in the second quarter. Nisa Investment Advisors LLC now owns 3,203 shares of the company’s stock valued at $35,000 after buying an additional 1,269 shares during the last quarter. Quarry LP boosted its position in Sonos by 485.8% during the third quarter. Quarry LP now owns 3,251 shares of the company’s stock worth $51,000 after acquiring an additional 2,696 shares during the last quarter. Leonteq Securities AG purchased a new stake in Sonos during the 4th quarter valued at about $93,000. Centaurus Financial Inc. raised its holdings in Sonos by 9.0% in the 2nd quarter. Centaurus Financial Inc. now owns 10,375 shares of the company’s stock valued at $112,000 after acquiring an additional 856 shares during the last quarter. Finally, Transcend Capital Advisors LLC purchased a new position in Sonos in the 2nd quarter worth approximately $119,000. Hedge funds and other institutional investors own 85.82% of the company’s stock.

Sonos News Roundup

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Q1 earnings beat and margin/strategy message — Sonos reported stronger-than-expected revenue and EPS, highlighted margin improvement and product-led growth; analysts and press note this as the main catalyst for the stock move. Why Sonos (SONO) Is Up 6.8%
• Positive Sentiment: Shares gap up after earnings — coverage noting the post-earnings gap and investor reaction supports near-term momentum. Sonos Shares Gap Up Following Earnings Beat
• Positive Sentiment: New product launch (Amp Multi) — management emphasized new hardware that targets more complex audio setups, supporting future revenue and ecosystem expansion. This underpins the bullish interpretation of the quarter. Sonos is back with new hardware
• Positive Sentiment: Reliability and customer focus restored — company messaging about fixing reliability issues and refocusing on customer advocacy should reduce churn and help long-term brand value. With reliability restored, Sonos focuses on customer advocacy
• Neutral Sentiment: Positive product reviews — editorial reviews (e.g., Sonos Ace headphones and Era 100) praise product quality, supporting brand premium but not an immediate revenue signal. Are the Sonos Ace still worth it in 2026?
• Neutral Sentiment: Retail promotions and flash sales — multiple outlets highlight discounts on Era 100, Arc Ultra + Sub 4, and Ace headphones for events (Valentine’s / game day). Promotions can drive volume but timing/scale matter for quarterly results. Save $550 Off the Sonos Arc Ultra
• Negative Sentiment: Dealer clearance & record-low pricing — reports that Amazon and others are clearing out Era 100 units and Ace headphones have hit record low prices could pressure ASPs and margins if discounts persist or expand. This is the principal downside risk investors will watch. Sonos Era 100 Hits Record Low
• Negative Sentiment: Frequent promotional cadence — sustained discounting across core products (earbuds, speakers, soundbars) can boost near-term unit sales but erode gross margins and brand premium if prolonged. Sonos Ace headphones drop to a record low

Sonos Company Profile

Sonos, Inc is a consumer electronics company specializing in wireless home audio systems. The company’s core business revolves around designing, developing and manufacturing smart speakers and soundbars that deliver high-fidelity audio and seamless multi-room listening experiences. Sonos products connect via Wi-Fi or Bluetooth and integrate with popular streaming services, enabling users to control music and other audio content through a dedicated mobile app, voice assistants or traditional controls.

Sonos offers a diversified product lineup that includes compact speakers such as Sonos One and Sonos Roam, premium models like Sonos Five and Sonos Move, home theater solutions including Sonos Beam and Sonos Arc, as well as accessories such as the Sonos Sub and Sonos Amp.