Sony (NYSE:SONY) Stock Rating Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Sony from “strong buy” to “hold,” joining a mixed analyst outlook. The overall consensus is “hold,” with an average price target of $22.00.
• Sony’s latest quarterly results exceeded expectations, with earnings per share of $0.36 versus a $0.28 estimate and revenue of $17.45 billion, up 8.2% year over year.
• Sony shares opened at $23.49, while insiders have sold approximately $14.6 million worth of stock over the past 90 days; institutional investors own 14.05% of the company.

Sony (NYSE:SONY - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Wednesday, Zacks reports.

A number of other research firms have also recently weighed in on SONY. Wall Street Zen cut shares of Sony from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Weiss Ratings reissued a "sell (d+)" rating on shares of Sony in a research note on Monday, August 17th. Finally, Benchmark restated a "buy" rating on shares of Sony in a research report on Monday, August 3rd. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $22.00.

Sony Trading Down 0.2%

SONY opened at $23.49 on Wednesday. The firm's 50 day moving average is $23.60 and its 200-day moving average is $21.92. Sony has a 52-week low of $19.32 and a 52-week high of $30.34. The company has a quick ratio of 0.97, a current ratio of 1.25 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $138.76 billion, a P/E ratio of 20.97, a P/E/G ratio of 1.70 and a beta of 0.99.

Sony (NYSE:SONY - Get Free Report) last issued its quarterly earnings results on Saturday, August 1st. The company reported $0.36 EPS for the quarter, topping the consensus estimate of $0.28 by $0.08. The business had revenue of $17.45 billion for the quarter, compared to analysts' expectations of $17.17 billion. Sony had a negative net margin of 2.00% and a positive return on equity of 13.06%. The company's quarterly revenue was up 8.2% compared to the same quarter last year. During the same quarter last year, the company posted $42.84 earnings per share. Analysts expect that Sony will post 1.41 EPS for the current fiscal year.

Insider Transactions at Sony

In other news, insider Kenji Tanaka sold 20,000 shares of the business's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $23.83, for a total transaction of $476,600.00. Following the transaction, the insider directly owned 43,899 shares in the company, valued at $1,046,113.17. The trade was a 31.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Jonathan Jose Platt sold 16,512 shares of the company's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $21.08, for a total value of $348,072.96. Following the completion of the transaction, the insider directly owned 83,326 shares in the company, valued at approximately $1,756,512.08. The trade was a 16.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 651,565 shares of company stock worth $14,612,651. 7.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sony

Several institutional investors and hedge funds have recently added to or reduced their stakes in SONY. Nicolet Advisory Services LLC raised its position in Sony by 2.5% during the 4th quarter. Nicolet Advisory Services LLC now owns 18,097 shares of the company's stock worth $456,000 after buying an additional 440 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. increased its stake in shares of Sony by 8.3% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 6,272 shares of the company's stock worth $126,000 after acquiring an additional 481 shares during the period. Parallel Advisors LLC increased its stake in shares of Sony by 1.6% in the fourth quarter. Parallel Advisors LLC now owns 32,735 shares of the company's stock worth $838,000 after acquiring an additional 516 shares during the period. Hardy Reed LLC raised its holdings in shares of Sony by 3.3% during the first quarter. Hardy Reed LLC now owns 18,446 shares of the company's stock worth $382,000 after purchasing an additional 584 shares during the last quarter. Finally, Key Financial Inc raised its holdings in shares of Sony by 2.5% during the first quarter. Key Financial Inc now owns 24,867 shares of the company's stock worth $515,000 after purchasing an additional 602 shares during the last quarter. 14.05% of the stock is currently owned by institutional investors and hedge funds.

Sony News Roundup

Here are the key news stories impacting Sony this week:

• Positive Sentiment: PlayStation demand remains robust. Reports that Sony is rationing PS5 and PS5 Pro consoles in Japan, with lottery access and “gamer” eligibility requirements, indicate supply is struggling to keep pace with demand ahead of major releases such as GTA 6. This supports hardware sales, software engagement and the broader PlayStation ecosystem. GTA 6 is creating PS5 Pro shortages
• Positive Sentiment: Product improvements could extend the PS5 cycle. A quietly redesigned PS5 Slim reportedly offers improved cooling and a replaceable battery, potentially improving reliability and ownership appeal without requiring a new console generation. Sony redesigned the PS5 Slim
• Positive Sentiment: Wall Street remains supportive. A Zacks report highlights bullish analyst views on SONY, which may reinforce investor confidence following the company’s latest earnings beat and revenue growth. Wall Street bullish views on Sony
• Positive Sentiment: Sony is expanding its entertainment pipeline. New release dates for several 2027 films, including Helldivers, 24 Jump Street and a Hugh Jackman-led Treasure Island, provide potential future contributions from Sony’s film business. The planned Spider-Man: Clone Saga series with Amazon also adds franchise monetization potential. Sony’s 2027 movie schedule
• Neutral Sentiment: Leadership promotions at Sony Pictures Television and Columbia Pictures suggest continuity, but are unlikely to materially affect near-term earnings. Sony TV leadership changes
• Negative Sentiment: Some entertainment and device concerns remain. The Helldivers movie has been delayed, postponing possible box-office revenue, while an Xperia 10 VIII review criticizes its higher price for limited improvements. These issues are relatively small compared with the PlayStation developments but could weigh on sentiment toward Sony’s film and mobile businesses. Sony’s Helldivers movie delay

About Sony

Sony Group Corporation is a Japan-based global entertainment and technology company headquartered in Tokyo. Founded in 1946 as Tokyo Tsushin Kogyo, the company adopted the Sony name in 1958. Sony's businesses serve consumers and commercial customers worldwide across entertainment, electronics, imaging and digital services.

Sony's principal activities include its Game & Network Services business, centered on the PlayStation platform, hardware, software and online services; Music, which develops and distributes recorded music and manages music publishing; and Pictures, which produces and distributes films, television programs and other visual entertainment.

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