Major Corporations including Blackrock have moved to dump their shareholding in Sonos ahead of their next quarter filings in February. During the past 12 months shares in the US sound Company have fallen 26%, with insiders tipping another poor result when they next file.
During the past 12 months shares in the business have gone from a high of US$30 to last week trading at US$18.55.
Among those to have sold down their shareholding is Landscape Capital Management, after it was recently revealed that Sonos makes more sales flogging cheap speakers to Ikea than their branded Sonos speakers.
Last week BlackRock filed with the SEC disclosing that they have decreased their shareholdings in Sonos by by 8.82%. They still own 16.1% of the company.
Sonos, whose business has come under pressure on several fronts, is struggling to compete, as new competitors strip share away from Sonos in a market that is tipped to grow.
Recently Apple launched an all-new HomePod, which is not good news for Sonos, with research showing that consumers are investing in voice-activated network speakers from Google, Amazon and well-known audio brands such as Denon and Bowers & Wilkins.
The smart-networked speaker market is tipped to grow 21.66% this year, with the Apple HomePod tipped to strip share away from the Sonos One speaker which ,unlike the HomePod, is not Matter-enabled.
In recent months, several investors have sold down Sonos share, including numerous institutional investors and hedge funds.
The value of BlackRock’s holdings in Sonos increased by 77.4% during the first three months of 2018 Now the big investment Company is selling stock as insiders tip a “rough road ahead “for the US business.
The projected annual revenue for Sonos is US$1.7 billion, while the projected annual earnings per share is US$0.28, a decrease of -47.17%.
