Sono-Tek (NASDAQ:SOTK) Share Price Crosses Above 50 Day Moving Average - Here's Why

Key Points

• Sono-Tek shares crossed above the 50-day moving average of $3.54, trading at $4.20, indicating a potential upward trend in stock performance.
• Northland Capital Markets downgraded Sono-Tek from a "strong-buy" to a "hold" rating, with a consensus rating of "Hold" and an average price target of $7.50.
• Institutional ownership of Sono-Tek is strong, with Northern Trust Corp increasing its stake by 58.8% in the last quarter, reflecting confidence in the company’s prospects.

Shares of Sono-Tek Corporation (NASDAQ:SOTK - Get Free Report) crossed above its 50 day moving average during trading on Tuesday . The stock has a 50 day moving average of $3.54 and traded as high as $4.30. Sono-Tek shares last traded at $4.20, with a volume of 4,857 shares traded.

Analysts Set New Price Targets

SOTK has been the topic of a number of recent analyst reports. Northland Capmk downgraded shares of Sono-Tek from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 29th. Northland Securities reiterated a "market perform" rating on shares of Sono-Tek in a report on Thursday, May 29th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, Sono-Tek has a consensus rating of "Hold" and an average price target of $7.50.

Sono-Tek Price Performance

The stock has a market capitalization of $66.06 million, a price-to-earnings ratio of 46.67 and a beta of -0.25. The stock's 50 day simple moving average is $3.54 and its 200-day simple moving average is $3.67.

Sono-Tek (NASDAQ:SOTK - Get Free Report) last posted its earnings results on Thursday, July 10th. The industrial products company reported $0.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.02 by $0.01. The firm had revenue of $5.12 million during the quarter, compared to analysts' expectations of $5.24 million. Sono-Tek had a net margin of 6.93% and a return on equity of 8.10%. During the same period in the previous year, the company earned $0.02 earnings per share. As a group, equities research analysts anticipate that Sono-Tek Corporation will post 0.07 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sono-Tek

A hedge fund recently raised its stake in Sono-Tek stock. Northern Trust Corp boosted its stake in shares of Sono-Tek Corporation (NASDAQ:SOTK - Free Report) by 58.8% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 41,081 shares of the industrial products company's stock after purchasing an additional 15,212 shares during the quarter. Northern Trust Corp owned 0.26% of Sono-Tek worth $165,000 at the end of the most recent quarter. Institutional investors own 47.89% of the company's stock.

About Sono-Tek

Sono-Tek Corporation designs and manufactures ultrasonic coating systems for applying on parts and components for the microelectronics/electronics, alternative energy, medical, industrial, and research and development/other markets worldwide. The company also designs and manufactures custom-engineered ultrasonic coating systems; and provides nozzles and generators for manufacturers' equipment.

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