Sony (NYSE:SONY) Shares Gap Down – Should You Sell?

Shares of Sony Corporation (NYSE:SONY) gapped down before the market opened on Thursday . The stock had previously closed at $23.68, but opened at $23.04. Sony shares last traded at $23.0550, with a volume of 1,809,007 shares.

Sony News Roundup

Here are the key news stories impacting Sony this week:

• Positive Sentiment: Sony unveiled a trio of high-resolution global-shutter sensors (up to 105MP and 225fps) that strengthen its imaging technology leadership and open B2B opportunities in industrial, automotive and high-end cameras. Sony drops behemoth trio of global shutter sensors
• Positive Sentiment: Company frames the Sony–TCL arrangement as a strategic partnership that could let Sony focus capital on higher?margin segments (gaming, imaging, entertainment) while leveraging TCL’s scale for TV manufacturing — a move that could improve margins and reduce capex over time. Sony And TCL To Establish ‘Strategic Partnership’ For Home Entertainment Products
• Neutral Sentiment: Sony launched the LinkBuds Clip open?ear earbuds — a distinctive clip?on design that keeps situational awareness but faces mixed reviews and premium pricing; consumer reception and unit economics are uncertain in the short term. Sony’s latest earbuds clip onto your ear like jewelry
• Negative Sentiment: Multiple reports say TCL will gain majority control of Sony’s Bravia TV operations via a spin?off/joint venture — investors worry about loss of control, brand dilution, and short?term disruption to revenue recognition and margins from the TV unit. This deal appears to be the primary catalyst for downward pressure on the stock. TCL to gain majority ownership over Sony’s Bravia TVs
• Negative Sentiment: Coverage frames the TV move as “end of an era,” highlighting brand and customer concerns that may sustain investor skepticism until financial details and JV governance are clarified. End of an era: Sony to spin off TV business into joint venture with Chinese maker TCL

Analyst Upgrades and Downgrades

A number of research firms have issued reports on SONY. Cfra Research raised Sony to a “moderate buy” rating in a research report on Friday, October 10th. Nomura upgraded Sony from a “neutral” rating to a “buy” rating in a report on Wednesday, November 19th. Sanford C. Bernstein restated an “outperform” rating and issued a $30.00 price target (down previously from $33.00) on shares of Sony in a report on Wednesday, January 14th. Wolfe Research raised shares of Sony from a “peer perform” rating to an “outperform” rating in a research report on Wednesday, November 5th. Finally, Zacks Research lowered shares of Sony from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $31.50.

Sony Stock Performance

The firm has a market capitalization of $138.58 billion, a price-to-earnings ratio of 17.62, a price-to-earnings-growth ratio of 9.12 and a beta of 0.98. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.98 and a current ratio of 1.05. The stock’s fifty day moving average is $26.65 and its two-hundred day moving average is $27.24.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Sound Income Strategies LLC purchased a new stake in Sony during the 3rd quarter worth approximately $25,000. YANKCOM Partnership increased its stake in shares of Sony by 748.7% in the fourth quarter. YANKCOM Partnership now owns 976 shares of the company’s stock worth $25,000 after buying an additional 861 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in shares of Sony in the fourth quarter worth $27,000. NewSquare Capital LLC bought a new position in shares of Sony during the second quarter worth about $28,000. Finally, Ameriflex Group Inc. grew its stake in Sony by 304.0% in the third quarter. Ameriflex Group Inc. now owns 1,010 shares of the company’s stock worth $29,000 after purchasing an additional 760 shares in the last quarter. Hedge funds and other institutional investors own 14.05% of the company’s stock.

Sony Company Profile

Sony Group Corporation (NYSE: SONY) is a Japanese multinational conglomerate headquartered in Minato, Tokyo. Founded in 1946 by Masaru Ibuka and Akio Morita, Sony has grown from an electronics maker into a diversified global company with operations spanning consumer electronics, entertainment, gaming, semiconductors and financial services. The company’s shares trade in Japan and its American Depositary Receipts trade on the New York Stock Exchange under the ticker SONY.

Sony’s primary businesses include Electronics Products & Solutions, which covers televisions, audio equipment, digital cameras and professional broadcast systems; Game & Network Services, anchored by the PlayStation platform, consoles, software and online services; Music and Pictures, through Sony Music Entertainment and Sony Pictures Entertainment, producing, distributing and licensing recorded music, film and television content; Imaging & Sensing Solutions, which develops CMOS image sensors and other semiconductor components; and Financial Services, offering life insurance, banking and other financial products in Japan.