Sono-Tek Corporation (NASDAQ:SOTK) Short Interest Up 83.4% in August

Key Points

• Short interest surged 83.4% from 10,512 to 19,279 shares between August 15 and August 31, though only 0.1% of Sono-Tek’s shares are sold short.
• CFO Stephen James Bagley sold 8,346 shares for approximately $42,815, while insiders sold 13,000 shares worth $67,666 over the past 90 days. Institutional investors and hedge funds own 47.89% of the stock.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $8.50. Sono-Tek recently traded at $4.40 and reported quarterly EPS of $0.05 on revenue of $5.66 million.

Sono-Tek Corporation (NASDAQ:SOTK - Get Free Report) saw a significant growth in short interest in August. As of August 31st, there was short interest totaling 19,279 shares, a growth of 83.4% from the August 15th total of 10,512 shares. Based on an average trading volume of 35,095 shares, the short-interest ratio is presently 0.5 days. Currently, 0.1% of the company's stock are sold short.

Insider Activity

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

Hedge Funds Weigh In On Sono-Tek

Large investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Sono-Tek in the second quarter valued at about $73,000. Bard Associates Inc. acquired a new position in Sono-Tek during the second quarter valued at approximately $349,000. BlackRock Inc. bought a new position in Sono-Tek in the second quarter valued at approximately $179,000. Finally, Renaissance Technologies LLC grew its stake in Sono-Tek by 41.6% in the first quarter. Renaissance Technologies LLC now owns 89,100 shares of the industrial products company's stock valued at $362,000 after purchasing an additional 26,161 shares in the last quarter. 47.89% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

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

Sono-Tek Price Performance

Shares of SOTK traded down $0.10 during mid-day trading on Wednesday, hitting $4.40. 17,180 shares of the company's stock were exchanged, compared to its average volume of 36,193. Sono-Tek has a 52 week low of $3.40 and a 52 week high of $6.24. The company has a market cap of $69.17 million, a PE ratio of 35.11 and a beta of -0.02. The company has a 50-day simple moving average of $5.17 and a 200 day simple moving average of $4.85.

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. Sono-Tek had a net margin of 9.62% and a return on equity of 10.55%. The business had revenue of $5.66 million for the quarter, compared to analyst estimates of $5.60 million. During the same quarter in the previous year, the firm posted $0.03 earnings per share. On average, analysts anticipate that Sono-Tek will post 0.11 earnings per share for the current year.

About Sono-Tek

Sono-Tek Corporation is a specialized equipment manufacturer that designs, develops and sells ultrasonic spray coating systems for precision fluid delivery. The company's core technology uses high-frequency ultrasonic vibrations to generate fine, uniform droplets that can be applied to a broad range of substrates with minimal waste and high accuracy. This method enables precise control over coating thickness, distribution and material usage, making it well suited to applications requiring micro-scale deposition and tight process tolerances.

The company's product portfolio includes bench-top research and development stations, pilot-scale units and full production systems.

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