Sono-Tek (NASDAQ:SOTK) Stock Crosses Below 200-Day Moving Average - Time to Sell?

Key Points

• Sono-Tek shares briefly fell below their 200-day moving average, trading as low as $4.82 versus the $4.88 average, before recovering to $5.01.
• Analysts have a consensus “Hold” rating and an average price target of $8.50. The company met quarterly EPS expectations at $0.05 and slightly exceeded revenue estimates with $5.66 million.
• Insiders have been net sellers, including the CFO’s sale of 8,346 shares, while institutional ownership stands at approximately 47.9%.

Sono-Tek Corporation (NASDAQ:SOTK - Get Free Report) shares passed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $4.88 and traded as low as $4.82. Sono-Tek shares last traded at $5.01, with a volume of 44,926 shares.

Analyst Upgrades and Downgrades

SOTK has been the subject of a number of research reports. Wall Street Zen raised shares of 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 note on Friday, August 28th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $8.50.

Sono-Tek Stock Performance

The stock has a market capitalization of $78.76 million, a PE ratio of 38.54 and a beta of -0.02. The stock has a 50-day moving average price of $5.05 and a two-hundred day moving average price of $4.88.

Sono-Tek (NASDAQ:SOTK - Get Free Report) last released its earnings results on Wednesday, July 8th. The industrial products company reported $0.05 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.05. The company had revenue of $5.66 million during the quarter, compared to analyst estimates of $5.60 million. Sono-Tek had a net margin of 9.62% and a return on equity of 10.55%. During the same period in the prior year, the firm posted $0.03 EPS. As a group, equities analysts predict that Sono-Tek Corporation will post 0.11 earnings per share for the current year.

Insiders Place Their Bets

In other Sono-Tek news, CFO Stephen Bagley sold 8,346 shares of the firm's stock in a transaction dated Thursday, July 30th. The stock was 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 of the company's stock, valued at $109,033.02. This trade represents a 28.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last ninety days, insiders have sold 13,000 shares of company stock valued at $67,666. Corporate insiders own 5.57% of the company's stock.

Institutional Trading of Sono-Tek

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Renaissance Technologies LLC grew its holdings in 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 in the last quarter. Bard Associates Inc. bought a new stake in Sono-Tek in the second quarter worth about $349,000. BlackRock Inc. bought a new stake in Sono-Tek in the second quarter worth about $179,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in shares of Sono-Tek during the second quarter valued at approximately $73,000. Institutional investors own 47.89% of the company's stock.

Sono-Tek Company Profile

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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