1. Sonos, Inc. (NASDAQ:SONO)
Number of Hedge Fund Holders: 49
Share Price as of November 26: $32.25
Sonos, Inc. (NASDAQ:SONO), an American tech company that manufactures audio products, presented a positive hedge fund sentiment in Q3, as the number of hedge funds tracked by Insider Monkey having stakes in the company grew to 49 in Q3, from 47 in the preceding quarter. These stakes are valued at $647.4 million.
Highlighting the company’s key consumer hardware idea for 2022, Morgan Stanley, recently, lifted its price target on Sonos, Inc. (NASDAQ:SONO) to $53, with an Overweight rating on the shares. In Q3, though the company missed analysts’ estimates, the revenue experienced a 6% year-over-year growth at $359.5 million.
Since the start of 2021, Sonos, Inc. (NASDAQ:SONO) returned 41.2% to shareholders, while its 12-month gains stood at 47.6%. With a stake worth $74.8 million, D E Shaw was the company’s leading shareholder in Q3.
Greenlight Capital mentioned Sonos, Inc. (NASDAQ:SONO) in its Q3 2021 investor letter. Here is what the firm has to say:
“We expanded what was a small position in Sonos (SONO) to a size that makes it worthwhile to discuss. We’ve owned SONO, which manufactures multi-room wireless smart home sound systems, for about a year. We were initially attracted by the strength of the brand and IP, SONO’s ecosystem dynamics, and signs that the company was under-earning. We’ve been impressed with management’s ability to consistently outperform both guidance and expectations amidst a rapidly changing macro environment. We think that there is a long-term household penetration story here: SONO products are currently in approximately 11 million homes globally, a number that has grown by at least 20% in each of the last 4 years and stands to grow further as SONO adds more accessible price points, expands into new verticals, and introduces new products and services. While we acknowledge that there are near-term headwinds in the form of supply chain disruptions and a cyclical normalization in consumer electronics demand, we think these will prove to be temporary distractions in an otherwise bright growth story. Between an elevated backlog of orders that will support demand well into the next year and strong pricing power, we see earnings growing close to 25% annually for the next few years. The stock currently trades at just over 15x FY2021 adjusted earnings net of the $5 cash per share on the balance sheet today. We purchased our stake at an average price of $28.45 per share. SONO shares ended the quarter at $32.36.”
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