What’s Fueling Sonos Inc (SONO) Stock’s -15.31% Loss Below Its 200-Day SMA?

Morgan Stanley has recently reduced Sonos Inc (SONO) stock to Underweight rating, as announced on September 26, 2024, according to Finviz. Earlier, on August 8, 2024, Craig Hallum had reduced the stock from a Buy to Hold, setting a price target of $10 for SONO stock. Morgan Stanley also raised rating with a price target of $20. Additionally, BofA Securities reduced Neutral rating on November 7, 2023, with a target price of $12. Rosenblatt analysts, in their report published on September 20, 2023, also initiated Buy rating for Sonos Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.


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Sonos Inc (SONO) Stock Trading Recap

On Wednesday, Sonos Inc (SONO) stock saw a decline, ending the day at $12.91 which represents a decrease of $-0.07 or -0.54% from the prior close of $12.98. The stock opened at $12.95 and touched a low of $12.85 during the day, reaching a high of $13.26. The volume of shares traded was 1.32 million falling short of the average volume of 2.18 million.

SONO Stock Performance and Moving Averages

In recent trading, Sonos Inc (SONO) stock price has shown some volatility, fluctuating 2.95% over the last five trades and 9.31% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -23.47%, and it has plunged by -1.38% in the previous three months. Currently, SONO is trading at 3.94%, 6.32%, and -15.31% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, SONO, a Technology sector stock, is trading -34.67% below its 52-week high but remains 29.49% above its 52-week low. The Average True Range (ATR) (14 days) of 0.41 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Sonos Inc’s Profitability and Valuation Ratios

Sonos Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 0.35% and a profit margin of -1.04%, with a gross margin of -23.47%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Sonos Inc’s market capitalization stands at $1.56 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. Additionally, the Price-to-Sales Ratio is 1, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.49, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.90% of Sonos Inc (SONO)’s shares, while financial institutions hold 93.07%.

Notable insider trades include Bouvat-Merlin Maxime, Chief Product Officer at Sonos Inc (SONO), who sold 37256 shares on Aug 19 ’24, at $11.53 each, totaling $0.43 million. On Jul 17 ’24, Mason Christopher Scott, Principal Accounting Officer, sold 10000 shares for $14.45 each, amounting to $0.14 million. Additionally, on Jul 01 ’24, Millington Nicholas sold 7730 shares at $14.7 each, generating $0.11 million.

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