Sonos Inc. (NASDAQ:SONO): A Fundamentally Weighted Stock for Long-Term Investors

Sonos Inc. (NASDAQ:SONO) previous close was $21.36 while the outstanding shares total 112.85M. SONO’s shares traded lower over the last trading session, losing -2.39% on 12/11/20. The shares fell to a low of $20.56 before closing at $20.85. Intraday shares traded counted 6.39 million, which was -42.92% lower than its 30-day average trading volume of 4.47M. The stock’s Relative Strength Index (RSI) is 57.62, with weekly volatility at 5.29% and ATR at 1.07. The SONO stock’s 52-week price range has touched low of $6.58 and a $23.28 high.

Investors have identified the Consumer Electronics company Sonos Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.41 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Sonos Inc. (SONO) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For SONO, the company has in raw cash 407.29 million on their books with 6.67 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 660.38 million total, with 393.01 million as their total liabilities.

SONO were able to record 128.95 million as free cash flow during the Q4 2020 quarter of the year, this saw their quarterly net cash flow reduce by 68.47 million. In cash movements, the company had a total of 161.99 million as operating cash flow.

Potential earnings growth for Sonos Inc. (SONO)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q4 2020 quarter of the year, Sonos Inc. recorded a total of 339.84 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 13.44% coming in sequential stages and their sales for the Q4 2020 quarter increasing by 26.64%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 178.3 million trying to sell their products during the last quarter, with the result yielding a gross income of 161.54 million. This allows shareholders to hold on to 112.85M with the recently reported earning now reading 0.17 cents per share. This is a figure that compared to analyst’s prediction for their Q4 2020 (0.15 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.07 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SONO sounds very interesting.

Is the stock of SONO attractive?

In related news, Chief Executive Officer, Spence Patrick sold 27,023 shares of the company’s stock in a transaction that recorded on Dec 01. The sale was performed at an average price of 22.19, for a total value of 599,740. As the sale deal closes, the Director, Volpi Michelangelo now sold 141,422 shares of the company’s stock, valued at 3,029,627. Also, Director, Volpi Michelangelo sold 37,368 shares of the company’s stock in a deal that was recorded on Nov 27. The shares were price at an average price of 21.47 per share, with a total market value of 802,149. Following this completion of acquisition, the Director, Volpi Michelangelo now holds 143,387 shares of the company’s stock, valued at 3,074,834. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.60%.

4 out of 8 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Sonos Inc.. 1 analysts has assigned a Sell rating on the SONO stock. The 12-month mean consensus price target for the company’s shares has been set at $22.79.


Please enter your comment!
Please enter your name here