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

Key Points

• Short interest in Sono-Tek surged 77.5% to 66,018 shares as of October 15, representing about 0.4% of shares outstanding and 0.4 days to cover.
• SOTK shares fell 7.5% to $4.81, while the company’s latest quarterly results missed expectations: EPS was $0.02 versus $0.04 expected, and revenue was $5.23 million versus $5.54 million forecast.
• Analyst sentiment remains mixed but leans positive, with two Buy ratings and one Hold rating; the average price target is $7.75, compared with the recent share price.

Sono-Tek Corporation (NASDAQ:SOTK - Get Free Report) was the target of a significant increase in short interest in October. As of October 15th, there was short interest totaling 66,018 shares, an increase of 77.5% from the September 30th total of 37,185 shares. Based on an average daily trading volume, of 184,691 shares, the days-to-cover ratio is currently 0.4 days. Approximately 0.4% of the company's stock are sold short.

Sono-Tek Stock Down 7.5%

SOTK stock traded down $0.39 during trading on Friday, reaching $4.81. 238,256 shares of the company's stock were exchanged, compared to its average volume of 156,836. Sono-Tek has a 1-year low of $3.40 and a 1-year high of $7.48. The company's fifty day moving average price is $5.37 and its 200-day moving average price is $4.87. The firm has a market cap of $75.76 million, a PE ratio of 40.08 and a beta of 0.07.

Sono-Tek (NASDAQ:SOTK - Get Free Report) last posted its quarterly earnings results on Wednesday, October 14th. The industrial products company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate 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, sell-side analysts expect that Sono-Tek will post 0.08 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sono-Tek

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

Analysts Set New Price Targets

SOTK has been the topic of several recent research reports. Wall Street Zen cut Sono-Tek from a "strong-buy" rating to a "hold" rating in a research report on Saturday, October 17th. Weiss Ratings downgraded Sono-Tek from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, October 23rd. Finally, Northland Securities upgraded Sono-Tek from a "market perform" rating to an "outperform" rating and set a $7.00 target price on the stock in a report on Monday, October 26th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $7.75.

Sono-Tek Company Profile

Sono-Tek Corporation is a precision technology company that designs and manufactures ultrasonic coating and spraying systems. Its equipment uses high-frequency ultrasonic energy to atomize liquids into controlled, uniform sprays, enabling manufacturers to apply thin films, coatings and other materials with minimal overspray and waste.

The company offers ultrasonic spray nozzles, integrated coating systems, precision liquid-dispensing equipment and automated or robotic platforms. Its technologies are used in applications including medical devices, electronics, fuel cells, solar and alternative-energy products, glass and other industrial components.

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