Hedge Funds Brace for Impact: Top 5 Stocks to Dump Now

1. Sonos, Inc. (NASDAQ:SONO)

Number of Hedge Fund Holders in Q1 2022: 30

Number of Hedge Fund Holders in Q4 2021: 45

Sonos, Inc. (NASDAQ:SONO) was incorporated in 2002 and is headquartered in Santa Barbara, California, operating as a manufacturer and distributor of audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Sonos, Inc. (NASDAQ:SONO) stock has declined about 34.5% YTD as of June 27. 

On June 14, Morgan Stanley analyst Katy Huberty downgraded Sonos, Inc. (NASDAQ:SONO) to Equal Weight from Overweight, lowering the price target to $28 from $38. The analyst told investors that luxury consumer spending intentions are deteriorating, and with the stock market down roughly 22% year-to-date, consumer confidence is at a 10-year low while inflation remains at a 40-year high. 

Among the hedge funds tracked by Insider Monkey, Coliseum Capital is the biggest Sonos, Inc. (NASDAQ:SONO) shareholder as of Q1 2022, with approximately 4 million shares worth $112.30 million. Overall, 30 hedge funds were bullish on the stock at the conclusion of the March quarter, down from 45 funds in the last quarter. 

Here is what Aristotle Capital Management Small Cap Equity has to say about Sonos, Inc. (NASDAQ:SONO) in its Q1 2022 investor letter:

“Sonos (NASDAQ:SONO), a consumer electronics company with proprietary multi-room smart speaker technology, was added to the portfolio on the belief that strong consumer demand for the company’s differentiated product offering plus a multi-year pipeline of upcoming new product introductions are expected to drive shareholder value for the next several years.”

You can also take a look at Bill Gates’ Latest Stock Portfolio: Top 10 Picks and 10 Stocks to Profit From Inflation. 

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