Sono-Tek (NASDAQ:SOTK) Downgraded by Wall Street Zen to Hold

Wall Street Zen cut shares of Sono-Tek (NASDAQ:SOTK – Free Report) from a strong-buy rating to a hold rating in a report issued on Saturday,Wall Street Zen reports.

Separately, Weiss Ratings raised Sono-Tek from a “hold (c+)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $8.50.

Check Out Our Latest Analysis on SOTK

Sono-Tek Price Performance

SOTK stock opened at $6.16 on Friday. Sono-Tek has a 1 year low of $3.40 and a 1 year high of $7.48. The company has a market cap of $97.02 million, a P/E ratio of 51.33 and a beta of 0.07. The firm has a 50-day moving average of $5.37 and a 200 day moving average of $5.12.

Sono-Tek (NASDAQ:SOTK – Get Free Report) last issued its quarterly earnings data on Wednesday, October 14th. The industrial products company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.04 by ($0.02). The company had revenue of $5.23 million during the quarter, compared to analysts’ expectations of $5.54 million. Sono-Tek had a return on equity of 9.95% and a net margin of 9.32%. On average, equities research analysts expect that Sono-Tek will post 0.08 earnings per share for the current fiscal year.

Insider Activity at Sono-Tek

In other news, CFO Stephen Bagley sold 8,346 shares of the business’s stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $5.13, for a total value 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. The trade was a 28.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Over the last quarter, insiders sold 13,000 shares of company stock valued at $67,666. Insiders own 5.57% of the company’s stock.

Institutional Trading of Sono-Tek

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. bought a new position in Sono-Tek during the 2nd quarter valued at approximately $73,000. BlackRock Inc. bought a new stake in Sono-Tek in the second quarter worth $179,000. Bard Associates Inc. bought a new stake in Sono-Tek in the second quarter worth $349,000. Finally, Renaissance Technologies LLC boosted its holdings 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 worth $362,000 after acquiring an additional 26,161 shares in the last quarter. Hedge funds and other institutional investors own 47.89% of the company’s stock.

Sono-Tek News Roundup

Here are the key news stories impacting Sono-Tek this week:

  • Positive Sentiment: Improved long-term earnings outlook: Northland Securities raised its EPS forecasts for fiscal 2028 to $0.22 from $0.14, fiscal 2029 to $0.22 from $0.17, fiscal 2030 to $0.23 from $0.18, and fiscal 2031 to $0.24 from $0.19. The firm also increased estimates for several 2028 quarters, suggesting expectations for stronger profitability as recent business wins convert to revenue. MarketBeat analyst estimates
  • Positive Sentiment: Record orders and medical-market growth: Recent analysis highlighted record orders, additions to the backlog, and strong growth in medical applications. Higher average selling prices and potential follow-on sales could support revenue growth beyond the near term, although much of the benefit depends on customer product validation. Sono-Tek: Record Orders, But Fairly Valued Sono-Tek Corporation: Backlog Additions To Support Year-Out Sales
  • Neutral Sentiment: Near-term outlook remains mixed: Northland raised its Q1 2028 EPS estimate to $0.02 from $0.01 and its Q3 2028 estimate to $0.10 from $0.04, but reduced its fiscal 2027 forecast to $0.08 from $0.10. The revisions indicate stronger later-period expectations but limited visibility in the immediate outlook.
  • Negative Sentiment: Valuation and execution risks: Wall Street Zen downgraded Sono-Tek to “Hold,” while analysis characterized the stock as fairly valued. The company also previously missed quarterly revenue and EPS estimates, and approximately 52% of sales came from two customers, creating concentration risk. Sono-Tek Cut to Hold at Wall Street Zen

Sono-Tek Company Profile

(Get Free Report)

Sono-Tek Corporation develops and manufactures ultrasonic coating and precision liquid-deposition systems. Its technology uses high-frequency sound waves to atomize liquids into a controlled spray, enabling uniform application of coatings, adhesives, lubricants, and other materials while minimizing overspray and material waste.

The company’s products include ultrasonic spray nozzles, integrated coating systems, and customized solutions designed for automated manufacturing processes. Sono-Tek also provides application development, process optimization, installation, training, and technical support to help customers integrate its equipment into production lines.

Sono-Tek’s systems are used across a range of industries, including medical devices, electronics, semiconductor and advanced technology manufacturing, alternative energy, glass, textiles, and other industrial applications.

Further Reading

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