Sony (NYSE:SONY) Stock Rating Cut to “Hold” at Zacks Research

Zacks Research cut shares of Sony (NYSE:SONY) from a strong-buy rating to a hold rating in a research note issued to investors on Wednesday morning,Zacks reports.

A number of other equities analysts have also recently weighed in on the stock. Benchmark reissued a “buy” rating on shares of Sony in a research report on Monday, August 3rd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Sony in a research note on Monday, August 17th. Finally, Wall Street Zen lowered Sony from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $22.00.

Sony Price Performance

Sony stock opened at $23.49 on Wednesday. The company has a current ratio of 1.25, a quick ratio of 0.97 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $138.76 billion, a P/E ratio of 20.97, a PEG ratio of 1.70 and a beta of 0.99. The business has a 50-day moving average of $23.60 and a 200-day moving average of $21.92. Sony has a 1 year low of $19.32 and a 1 year high of $30.34.

Sony (NYSE:SONY) last announced its quarterly earnings results on Saturday, August 1st. The company reported $0.36 earnings per share for the quarter, beating analysts’ consensus estimates of $0.28 by $0.08. The business had revenue of $17.45 billion for the quarter, compared to the consensus estimate of $17.17 billion. Sony had a negative net margin of 2.00% and a positive return on equity of 13.06%. Sony’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same period last year, the company posted $42.84 EPS. On average, equities analysts anticipate that Sony will post 1.41 EPS for the current year.

Insider Activity at Sony

In other Sony news, insider Robert Adrian Stringer sold 545,547 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $22.49, for a total transaction of $12,269,352.03. Following the completion of the transaction, the insider owned 100,547 shares in the company, valued at approximately $2,261,302.03. This represents a 84.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Ravi Ahuja sold 15,580 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $22.71, for a total value of $353,821.80. Following the transaction, the insider directly owned 22,096 shares of the company’s stock, valued at $501,800.16. This represents a 41.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 651,565 shares of company stock valued at $14,612,651 over the last three months. Insiders own 7.00% of the company’s stock.

Institutional Investors Weigh In On Sony

Institutional investors have recently bought and sold shares of the company. WCM Investment Management LLC boosted its position in Sony by 337.6% during the first quarter. WCM Investment Management LLC now owns 1,949,592 shares of the company’s stock valued at $38,836,000 after purchasing an additional 1,504,035 shares during the last quarter. Ferguson Wellman Capital Management Inc. acquired a new position in shares of Sony during the 1st quarter worth approximately $23,933,000. Wellington Management Group LLP bought a new stake in shares of Sony during the 2nd quarter worth approximately $10,232,000. Arrowstreet Capital Limited Partnership bought a new stake in shares of Sony during the 1st quarter worth approximately $39,998,000. Finally, Y Intercept Hong Kong Ltd boosted its holdings in shares of Sony by 338.7% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 295,454 shares of the company’s stock valued at $6,116,000 after buying an additional 228,108 shares during the last quarter. Institutional investors own 14.05% of the company’s stock.

Sony News Roundup

Here are the key news stories impacting Sony this week:

• Positive Sentiment: PlayStation demand remains robust. Reports that Sony is rationing PS5 and PS5 Pro consoles in Japan, with lottery access and “gamer” eligibility requirements, indicate supply is struggling to keep pace with demand ahead of major releases such as GTA 6. This supports hardware sales, software engagement and the broader PlayStation ecosystem. GTA 6 is creating PS5 Pro shortages
• Positive Sentiment: Product improvements could extend the PS5 cycle. A quietly redesigned PS5 Slim reportedly offers improved cooling and a replaceable battery, potentially improving reliability and ownership appeal without requiring a new console generation. Sony redesigned the PS5 Slim
• Positive Sentiment: Wall Street remains supportive. A Zacks report highlights bullish analyst views on SONY, which may reinforce investor confidence following the company’s latest earnings beat and revenue growth. Wall Street bullish views on Sony
• Positive Sentiment: Sony is expanding its entertainment pipeline. New release dates for several 2027 films, including Helldivers, 24 Jump Street and a Hugh Jackman-led Treasure Island, provide potential future contributions from Sony’s film business. The planned Spider-Man: Clone Saga series with Amazon also adds franchise monetization potential. Sony’s 2027 movie schedule
• Neutral Sentiment: Leadership promotions at Sony Pictures Television and Columbia Pictures suggest continuity, but are unlikely to materially affect near-term earnings. Sony TV leadership changes
• Negative Sentiment: Some entertainment and device concerns remain. The Helldivers movie has been delayed, postponing possible box-office revenue, while an Xperia 10 VIII review criticizes its higher price for limited improvements. These issues are relatively small compared with the PlayStation developments but could weigh on sentiment toward Sony’s film and mobile businesses. Sony’s Helldivers movie delay

Sony Company Profile

Sony Group Corporation is a Japan-based global entertainment and technology company headquartered in Tokyo. Founded in 1946 as Tokyo Tsushin Kogyo, the company adopted the Sony name in 1958. Sony’s businesses serve consumers and commercial customers worldwide across entertainment, electronics, imaging and digital services.

Sony’s principal activities include its Game & Network Services business, centered on the PlayStation platform, hardware, software and online services; Music, which develops and distributes recorded music and manages music publishing; and Pictures, which produces and distributes films, television programs and other visual entertainment.