Sony Corporation (NYSE:SONY) Receives Average Rating of "Hold" from Brokerages

Key Points

• Sony has a consensus analyst rating of “Hold” from seven brokerages, with four buy ratings, two holds, and one sell. The average 12-month price target is $22.00.
• Recent insider selling included large share sales by director Kenichiro Yoshida and insider Tsuyoshi Kodera. In the last 90 days, insiders sold a total of 468,500 shares valued at about $10.5 million.
• Sony’s latest quarterly results were mixed: revenue topped estimates at $19.15 billion, but EPS missed expectations at $0.09 versus $0.22 expected. The company also highlighted a push toward a more digital PlayStation strategy, which could improve margins over time but has drawn backlash.

Shares of Sony Corporation (NYSE:SONY - Get Free Report) have been given a consensus recommendation of "Hold" by the seven brokerages that are covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have issued a buy rating on the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $22.00.

A number of equities analysts have commented on the stock. Benchmark restated a "buy" rating on shares of Sony in a research report on Monday, May 11th. Sanford C. Bernstein restated a "market perform" rating and issued a $22.00 price target (down from $30.00) on shares of Sony in a report on Tuesday, March 17th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Sony in a report on Wednesday, May 20th.

Insider Buying and Selling at Sony

In other news, Director Kenichiro Yoshida sold 400,000 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $22.61, for a total transaction of $9,044,000.00. Following the completion of the transaction, the director directly owned 661,615 shares of the company's stock, valued at $14,959,115.15. This trade represents a 37.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Tsuyoshi Kodera sold 51,000 shares of Sony stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $20.54, for a total value of $1,047,540.00. Following the transaction, the insider owned 27,553 shares of the company's stock, valued at $565,938.62. This represents a 64.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 468,500 shares of company stock valued at $10,487,215 in the last ninety days. Corporate insiders own 7.00% of the company's stock.

Institutional Investors Weigh In On Sony

Several hedge funds have recently modified their holdings of the company. YANKCOM Partnership increased its holdings in shares of Sony by 748.7% during the 4th quarter. YANKCOM Partnership now owns 976 shares of the company's stock worth $25,000 after buying an additional 861 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of Sony in the fourth quarter worth $27,000. Elyxium Wealth LLC purchased a new position in shares of Sony in the 4th quarter valued at $27,000. Annis Gardner Whiting Capital Advisors LLC lifted its holdings in shares of Sony by 404.1% during the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 1,109 shares of the company's stock valued at $28,000 after acquiring an additional 889 shares in the last quarter. Finally, Twin Tree Management LP lifted its holdings in shares of Sony by 4,218.5% during the 4th quarter. Twin Tree Management LP now owns 1,112 shares of the company's stock valued at $28,000 after acquiring an additional 1,139 shares in the last quarter. 14.05% of the stock is owned by institutional investors and hedge funds.

Sony Stock Performance

Shares of NYSE:SONY traded down $0.00 on Friday, reaching $20.79. The company's stock had a trading volume of 5,535,994 shares, compared to its average volume of 5,505,421. Sony has a 52-week low of $19.32 and a 52-week high of $30.34. The stock has a market capitalization of $122.81 billion, a P/E ratio of -103.93, a PEG ratio of 1.65 and a beta of 0.94. The stock's 50-day moving average is $21.09 and its two-hundred day moving average is $22.16. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.18 and a quick ratio of 0.94.

Sony (NYSE:SONY - Get Free Report) last posted its quarterly earnings data on Friday, May 8th. The company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.13). The company had revenue of $19.15 billion for the quarter, compared to analysts' expectations of $18.43 billion. Sony had a negative net margin of 2.61% and a positive return on equity of 12.20%. The firm's revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the company earned $32.86 earnings per share. As a group, sell-side analysts forecast that Sony will post 1.28 EPS for the current year.

Sony News Roundup

Here are the key news stories impacting Sony this week:

• Positive Sentiment: Sony’s shift away from physical PlayStation discs could improve margins over time by reducing manufacturing, packaging, and logistics costs, and it signals a more digital-focused business model for future console generations. Sony is first console giant to stop making physical games
• Positive Sentiment: One report noted Sony’s stock climbed after the all-digital announcement, suggesting investors may be focusing on the long-term financial benefits of the transition rather than the fan backlash. Sony Stock Climbs After PlayStation’s All-Digital Announcement Despite Fan Backlash
• Neutral Sentiment: Former Sony leadership comments that PlayStation’s disc-less strategy could influence Xbox and Nintendo reinforce the idea that Sony is setting an industry trend, but this is more of a strategic headline than an immediate earnings catalyst. PlayStation's disc-less future could heavily influence Xbox and Nintendo, former Sony boss says
• Negative Sentiment: The move has triggered strong backlash from gamers and media coverage portraying Sony as abandoning physical ownership, which could create reputational noise and pressure around the PlayStation brand in the near term. Brands smell blood in the water after PlayStation axes game discs — and they're roasting Sony for it

About Sony

Sony Group Corporation NYSE: SONY is a Japanese multinational conglomerate headquartered in Minato, Tokyo. Founded in 1946 by Masaru Ibuka and Akio Morita, Sony has grown from an electronics maker into a diversified global company with operations spanning consumer electronics, entertainment, gaming, semiconductors and financial services. The company’s shares trade in Japan and its American Depositary Receipts trade on the New York Stock Exchange under the ticker SONY.

Sony’s primary businesses include Electronics Products & Solutions, which covers televisions, audio equipment, digital cameras and professional broadcast systems; Game & Network Services, anchored by the PlayStation platform, consoles, software and online services; Music and Pictures, through Sony Music Entertainment and Sony Pictures Entertainment, producing, distributing and licensing recorded music, film and television content; Imaging & Sensing Solutions, which develops CMOS image sensors and other semiconductor components; and Financial Services, offering life insurance, banking and other financial products in Japan.

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