In this paper we report the magnetic properties of nanosized CoO particles, prepared from sonochemically synthesized precursors and characterized using x-ray diffraction (XRD), conventional transmission electron microscopy (TEM) and scanning tunneling electron microscopy combined with energy dispersive x-ray analysis (STEM-EDX) techniques. The nanoparticles were faceted and the sizes varied between 30 and 60 nm depending on the time of annealing. They were stable even in the absence of any organic coating on them. Magnetic measurements reveal the presence of ferromagnetic interactions at low temperatures in the CoO nanoparticles synthesized after 2 and 4 h of annealing of the sonochemically synthesized precursor under nitrogen. However, after 6 h of annealing, the nanoparticles show hysteresis not only at low temperatures (1.5 K) but also at higher temperatures (100 K and room temperature), indicating the presence of room temperature ferromagnetism.