Sono-Tek Corporation (NASDAQ:SOTK) Sees Large Growth in Short Interest

Key Points

• Short interest surged 235.8% to 64,730 shares as of September 15, up from 19,279 shares at the end of August. Short interest represents 0.4% of outstanding shares, with a days-to-cover ratio of 1.4.
• Analyst sentiment remains mixed, with an average rating of Hold and a consensus price target of $8.50. Institutional ownership stands at 47.89%, while recent activity included new positions from several firms and a 41.6% stake increase by Renaissance Technologies.
• Sono-Tek shares recently traded at $5.01, within a 12-month range of $3.40 to $6.24. The company met quarterly EPS expectations at $0.05 and slightly exceeded revenue estimates with $5.66 million.

Sono-Tek Corporation (NASDAQ:SOTK - Get Free Report) was the recipient of a large growth in short interest in the month of September. As of September 15th, there was short interest totaling 64,730 shares, a growth of 235.8% from the August 31st total of 19,279 shares. Based on an average trading volume of 45,661 shares, the days-to-cover ratio is presently 1.4 days. Currently, 0.4% of the shares of the stock are sold short.

Wall Street Analysts Forecast Growth

SOTK has been the topic of a number of research reports. Wall Street Zen upgraded Sono-Tek to a "strong-buy" rating in a report on Sunday, July 12th. Weiss Ratings cut shares of Sono-Tek from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, August 28th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $8.50.

Insider Buying and Selling

In related news, CFO Stephen Bagley sold 8,346 shares of the business's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $5.13, for a total value of $42,814.98. Following the completion of the sale, the chief financial officer owned 21,254 shares of the company's stock, valued at approximately $109,033.02. The trade was a 28.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last ninety days, insiders have sold 13,000 shares of company stock valued at $67,666. 5.57% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. acquired a new position in Sono-Tek in the 2nd quarter valued at about $73,000. Bard Associates Inc. acquired a new stake in shares of Sono-Tek during the 2nd quarter worth approximately $349,000. BlackRock Inc. purchased a new stake in shares of Sono-Tek during the 2nd quarter valued at approximately $179,000. Finally, Renaissance Technologies LLC raised its position in shares of Sono-Tek by 41.6% during the 1st quarter. Renaissance Technologies LLC now owns 89,100 shares of the industrial products company's stock valued at $362,000 after buying an additional 26,161 shares during the period. Institutional investors and hedge funds own 47.89% of the company's stock.

Sono-Tek Stock Performance

Shares of SOTK stock traded up $0.24 during trading hours on Friday, reaching $5.01. The company had a trading volume of 44,926 shares, compared to its average volume of 60,087. Sono-Tek has a 12-month low of $3.40 and a 12-month high of $6.24. The company has a market capitalization of $78.76 million, a price-to-earnings ratio of 38.54 and a beta of -0.02. The stock has a fifty day moving average of $5.05 and a 200-day moving average of $4.88.

Sono-Tek (NASDAQ:SOTK - Get Free Report) last announced its quarterly earnings data on Wednesday, July 8th. The industrial products company reported $0.05 EPS for the quarter, hitting analysts' consensus estimates of $0.05. The firm had revenue of $5.66 million for the quarter, compared to the consensus estimate of $5.60 million. Sono-Tek had a return on equity of 10.55% and a net margin of 9.62%.During the same quarter last year, the business posted $0.03 earnings per share. On average, analysts forecast that Sono-Tek will post 0.11 EPS for the current year.

About Sono-Tek

Sono-Tek Corporation develops and manufactures ultrasonic coating systems used to apply precise, uniform coatings to a variety of surfaces and components. Its technology uses high-frequency sound energy to atomize liquids into fine droplets, enabling controlled coating application with reduced overspray and material waste compared with conventional spray methods.

The company offers ultrasonic spray nozzles, coating systems, and integrated coating solutions, including automated and computer-controlled equipment.

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