Chip stocks fall with Nvidia after data center rev disappointment
Sonos Inc . (NASDAQ:SONO), a leader in premium home audio systems, has seen its stock price tumble to $9.29 USD, near its 52-week low, reflecting a significant downturn in investor sentiment. According to InvestingPro data, analysts maintain price targets ranging from $12.30 to $19.00, suggesting potential upside despite recent weakness. This latest price level, which starkly contrasts with the company’s performance over the past year, underscores the challenges Sonos has faced in the market. The year-to-date return of -28.39% paints a grim picture, though InvestingPro analysis indicates the company holds more cash than debt and is slightly undervalued at current levels. Investors and analysts are closely monitoring the company’s strategy and market position as it attempts to rebound from this low point. Get the complete picture with InvestingPro’s comprehensive Research Report, part of their coverage of 1,400+ top US stocks.
In other recent news, Sonos, Inc. has announced a significant corporate reorganization, resulting in a workforce reduction of approximately 12%, affecting around 200 employees. This move is part of an effort to streamline operations and improve cost structures, with restructuring charges expected to range between $15 and $18 million. Additionally, Sonos has decided to halt its plans to launch a video streaming player, known internally as ’Pinewood,’ as interim CEO Tom Conrad reassesses the company’s strategic direction. Meanwhile, the company has approved a new stock repurchase program, authorizing the buyback of up to $150 million of its common stock, following the expiration of a previous $200 million program.
Sonos shareholders have also recently ratified KPMG LLP as the company’s independent auditor and elected three directors to the board during the Annual Meeting of Stockholders. In other developments, Rosenblatt Securities has reaffirmed its Buy rating on Sonos, citing a positive outlook and setting a price target of $18.00 ahead of the company’s upcoming earnings report. Rosenblatt highlights Sonos’ potential for product innovation and profitability under its new leadership. Lastly, Sonos has implemented changes to its corporate governance, including amendments to its Restated Certificate of Incorporation and Bylaws, aligning with Delaware law provisions.
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