Sono-Tek Corporation (NASDAQ:SOTK) Sees Large Decrease in Short Interest

Sono-Tek Corporation (NASDAQ:SOTK) saw a large drop in short interest during the month of September. As of September 30th, there was short interest totaling 37,185 shares, a drop of 42.6% from the September 15th total of 64,730 shares. Based on an average daily volume of 122,169 shares, the short-interest ratio is presently 0.3 days. Currently, 0.3% of the shares of the company are sold short.

More Sono-Tek News

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

• Positive Sentiment: Northland Securities raised its EPS forecasts for Sono-Tek’s second quarter of 2028 and fiscal 2028 through fiscal 2031. The firm’s fiscal 2028 estimate increased to $0.22 from $0.14, while its fiscal 2031 forecast rose to $0.24 from $0.19, suggesting expectations for stronger profitability over the longer term. MarketBeat Sono-Tek analyst estimates
• Positive Sentiment: Recent commentary highlights record orders, backlog additions and strong growth in medical applications. Higher average selling prices and successful product validation could support follow-on sales and revenue growth beyond the current fiscal year. Sono-Tek: Record Orders, But Fairly Valued
• Neutral Sentiment: Northland raised its Q1 2028 EPS forecast to $0.02 from $0.01 and its Q3 2028 estimate to $0.10 from $0.04, but lowered its fiscal 2027 forecast to $0.08 from $0.10. The revisions indicate improving later-period expectations but uneven near-term earnings visibility.
• Negative Sentiment: Wall Street Zen downgraded Sono-Tek to “Hold,” reinforcing concerns that the stock may already reflect much of its growth potential. With a P/E ratio above 50, valuation remains demanding, particularly after the company’s latest quarterly revenue and EPS results missed analyst expectations. Sono-Tek Cut to Hold at Wall Street Zen
• Negative Sentiment: Customer concentration remains a risk, with roughly 52% of sales coming from two customers. Product validation requirements could also delay the conversion of backlog into reported revenue. Sono-Tek Corporation: Backlog Additions To Support Year-Out Sales

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on SOTK shares. Weiss Ratings raised Sono-Tek from a “hold (c+)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Wall Street Zen cut Sono-Tek from a “strong-buy” rating to a “hold” rating in a research report on Saturday. 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 data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $8.50.

Insider Activity at Sono-Tek

In related news, CFO Stephen Bagley sold 8,346 shares of Sono-Tek stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $5.13, for a total value of $42,814.98. Following the sale, the chief financial officer owned 21,254 shares of the company’s stock, valued at approximately $109,033.02. The trade was a 28.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders have sold 13,000 shares of company stock valued at $67,666. Insiders own 5.57% of the company’s stock.

Institutional Investors Weigh In On Sono-Tek

Institutional investors and hedge funds have recently made changes to their positions in the business. Renaissance Technologies LLC boosted its stake in Sono-Tek by 41.6% during the first 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 during the period. Bard Associates Inc. bought a new position in Sono-Tek in the 2nd quarter worth about $349,000. BlackRock Inc. bought a new position in Sono-Tek in the 2nd quarter worth about $179,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Sono-Tek in the 2nd quarter valued at about $73,000. Hedge funds and other institutional investors own 47.89% of the company’s stock.

Sono-Tek Stock Performance

Sono-Tek stock traded up $0.05 during midday trading on Friday, reaching $6.16. 151,796 shares of the stock were exchanged, compared to its average volume of 166,229. The company’s fifty day moving average is $5.37 and its 200-day moving average is $5.12. The firm has a market cap of $97.02 million, a PE ratio of 51.33 and a beta of 0.07. Sono-Tek has a 52 week low of $3.40 and a 52 week high of $7.48.

Sono-Tek (NASDAQ:SOTK) last posted its earnings results on Wednesday, October 14th. The industrial products company reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.02). The firm 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, sell-side analysts anticipate that Sono-Tek will post 0.10 earnings per share for the current fiscal year.

Sono-Tek Company Profile

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.