Sono-Tek (NASDAQ:SOTK) Stock Rating Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Sono-Tek from “strong buy” to “hold,” while Weiss Ratings upgraded it to “buy.” Overall, analysts maintain a “Moderate Buy” consensus with an $8.50 average price target.
• Sono-Tek shares opened at $6.16, with a market capitalization of approximately $97 million and a 12-month trading range of $3.40 to $7.48.
• The company’s latest quarterly results fell short of expectations, reporting $0.02 EPS versus $0.04 expected and revenue of $5.23 million versus the $5.54 million consensus estimate. Insiders have also sold 13,000 shares over the past 90 days.

Sono-Tek (NASDAQ:SOTK - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

Separately, Weiss Ratings raised Sono-Tek from a "hold (c+)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Sono-Tek has an average rating of "Moderate Buy" and an average price target of $8.50.

Sono-Tek Trading Up 0.8%

Shares of NASDAQ:SOTK opened at $6.16 on Friday. The stock's 50-day moving average price is $5.37 and its 200-day moving average price is $5.12. Sono-Tek has a 12-month low of $3.40 and a 12-month high of $7.48. The stock has a market capitalization of $97.02 million, a P/E ratio of 51.33 and a beta of 0.07.

Sono-Tek (NASDAQ:SOTK - Get Free Report) last released its earnings results on Wednesday, October 14th. The industrial products company reported $0.02 earnings per share for the quarter, missing analysts' consensus estimates of $0.04 by ($0.02). The company had revenue of $5.23 million during the quarter, compared to the consensus estimate of $5.54 million. Sono-Tek had a net margin of 9.32% and a return on equity of 9.95%. As a group, research analysts predict that Sono-Tek will post 0.10 EPS for the current year.

Insider Activity

In other news, CFO Stephen Bagley sold 8,346 shares of the company's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $5.13, for a total transaction of $42,814.98. Following the completion of the transaction, the chief financial officer directly owned 21,254 shares of the company's stock, valued at approximately $109,033.02. This represents a 28.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders have sold a total of 13,000 shares of company stock valued at $67,666 in the last 90 days. 5.57% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SOTK. Bard Associates Inc. bought a new stake in shares of Sono-Tek in the 2nd quarter worth approximately $349,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Sono-Tek during the second quarter valued at approximately $73,000. BlackRock Inc. bought a new position in shares of Sono-Tek during the second quarter valued at approximately $179,000. Finally, Renaissance Technologies LLC raised its holdings in shares of Sono-Tek by 41.6% during the first quarter. Renaissance Technologies LLC now owns 89,100 shares of the industrial products company's stock valued at $362,000 after acquiring an additional 26,161 shares in the last quarter. Hedge funds and other institutional investors own 47.89% of the company's stock.

Sono-Tek Company Profile

Sono-Tek Corporation develops and manufactures ultrasonic coating and precision liquid-deposition systems. Its technology uses high-frequency sound waves to atomize liquids into a controlled spray, enabling uniform application of coatings, adhesives, lubricants, and other materials while minimizing overspray and material waste.

The company's products include ultrasonic spray nozzles, integrated coating systems, and customized solutions designed for automated manufacturing processes. Sono-Tek also provides application development, process optimization, installation, training, and technical support to help customers integrate its equipment into production lines.

Sono-Tek's systems are used across a range of industries, including medical devices, electronics, semiconductor and advanced technology manufacturing, alternative energy, glass, textiles, and other industrial applications.

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