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

Sony (NYSE:SONY) was downgraded by investment analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Wednesday, Zacks reports.

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

Sony Stock Performance

Shares of SONY opened at $23.49 on Wednesday. The company has a market capitalization of $138.76 billion, a price-to-earnings ratio of 20.97, a price-to-earnings-growth ratio of 1.70 and a beta of 0.99. Sony has a 52-week low of $19.32 and a 52-week high of $30.34. The company has a quick ratio of 0.97, a current ratio of 1.25 and a debt-to-equity ratio of 0.11. The stock has a 50 day moving average price of $23.60 and a 200 day moving average price of $21.92.

Sony (NYSE:SONY) last issued its quarterly earnings data on Saturday, August 1st. The company reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.08. The business had revenue of $17.45 billion during 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%. The company’s revenue was up 8.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $42.84 EPS. Research analysts predict that Sony will post 1.41 EPS for the current fiscal year.

Insiders Place Their Bets

In other Sony news, insider Jonathan Jose Platt sold 16,512 shares of the business’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $21.08, for a total value of $348,072.96. Following the transaction, the insider directly owned 83,326 shares of the company’s stock, valued at approximately $1,756,512.08. The trade was a 16.54% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Tsuyoshi Kodera sold 17,100 shares of Sony stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $22.72, for a total transaction of $388,512.00. Following the completion of the sale, the insider directly owned 47,508 shares in the company, valued at approximately $1,079,381.76. The trade was a 26.47% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 651,565 shares of company stock valued at $14,612,651. 7.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SONY. Bank of America Corp DE lifted its position in shares of Sony by 9.1% during the 1st quarter. Bank of America Corp DE now owns 16,992,579 shares of the company’s stock valued at $351,746,000 after acquiring an additional 1,413,785 shares during the period. Capital International Investors increased its stake in Sony by 23.1% in the 4th quarter. Capital International Investors now owns 7,446,889 shares of the company’s stock valued at $191,534,000 after purchasing an additional 1,397,271 shares in the last quarter. Capital World Investors raised its holdings in Sony by 1.5% during the fourth quarter. Capital World Investors now owns 5,076,516 shares of the company’s stock worth $129,973,000 after purchasing an additional 74,768 shares during the last quarter. 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 worth $38,836,000 after purchasing an additional 1,504,035 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in Sony in the first quarter valued at $39,998,000. 14.05% of the stock is currently owned by institutional investors and hedge funds.

Sony News Summary

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.