Sono-Tek Shares Dip After Downgrade, Institutional Trading Picks Up

Shares of Sono-Tek Corporation (NASDAQ: SOTK) fell below their 200-day moving average on Monday, following a downgrade from Zacks Research. The rating was shifted from a strong-buy to a hold, which contributed to a decline in stock value. The company’s 200-day moving average stands at $3.86, while the stock was trading as low as $3.60 during the session. At the close, Sono-Tek shares were priced at $3.60, with a trading volume of 34,092 shares.

In addition to Zacks Research’s downgrade, Weiss Ratings also reissued a “hold (C-)” rating for Sono-Tek. MarketBeat.com indicates that four investment analysts currently rate the stock as a hold. The consensus price target for Sono-Tek is $7.50.

Institutional Stake Increases

Recent disclosures with the Securities and Exchange Commission (SEC) show that Susquehanna International Group LLP has increased its stake in Sono-Tek by 28.2% during the third quarter of 2023. This hedge fund now holds 15,410 shares of the company, having acquired an additional 3,389 shares in the quarter. As of the end of the last quarter, its investment in Sono-Tek was valued at approximately $69,000. Overall, institutional investors and hedge funds now own 47.89% of the company’s stock.

Sono-Tek’s stock performance has been mixed, with a 50-day moving average at $4.15. The company has a market capitalization of $58.27 million, a price-to-earnings ratio of 37.10, and a beta of -0.27.

Recent Earnings Report

On October 14, 2023, Sono-Tek reported its earnings results for the quarter. The company posted earnings per share (EPS) of $0.03, surpassing analysts’ expectations of $0.02 by $0.01. Revenue for the quarter was $5.16 million, slightly below the consensus estimate of $5.25 million. The company recorded a return on equity of 8.38% and a net margin of 7.33%. In the same period last year, Sono-Tek reported an EPS of $0.02.

Analysts forecast that Sono-Tek will achieve an EPS of $0.07 for the current fiscal year.

Founded to design and manufacture ultrasonic coating systems, Sono-Tek serves various markets, including microelectronics, alternative energy, and medical applications. The company also develops custom-engineered systems and provides nozzles and generators for use in manufacturing equipment.

As the market reacts to the recent developments, investors will be closely monitoring Sono-Tek’s performance in the coming weeks.