Avantax Sells 10% of Sony Shares as Hedge Funds Shift Strategies

Avantax Advisory Services Inc. has reduced its holdings in Sony Corporation (NYSE: SONY) by 10.2%, according to a recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm now holds 103,062 shares after selling 11,671 shares during the second quarter of 2023. The total value of Avantax’s stake in Sony stood at approximately $2.68 million at the close of the quarter.

Changes among other institutional investors have also been noteworthy. Northern Trust Corp increased its holdings in Sony by 3.4% during the first quarter, now owning 7,845,521 shares valued at $199.2 million after acquiring an additional 257,838 shares. Meanwhile, Wellington Management Group LLP entered the fray by purchasing a new position valued at around $78.91 million. Ameriprise Financial Inc. made significant moves as well, boosting its stake by 124.5% in the same quarter, bringing its total to 2,060,705 shares worth $52.81 million after acquiring an additional 1,142,849 shares.

Allspring Global Investments Holdings LLC also made headlines, increasing its position in Sony by an astonishing 4,056.6% in the second quarter. The firm now owns 1,973,638 shares, valued at $50.27 million following the purchase of 1,926,156 shares. Lastly, Raymond James Financial Inc. raised its holdings by 0.4%, now owning 1,753,173 shares valued at $44.51 million after buying an additional 6,297 shares. Collectively, institutional investors now hold 14.05% of Sony’s stock.

Analyst Ratings Show Optimism for Sony

Recent analyst evaluations have shown increased optimism regarding Sony’s stock. Cfra Research upgraded the stock to a “moderate buy” rating on October 10, 2023, while Weiss Ratings reaffirmed a “buy (b)” rating on October 8, 2023. Zacks Research also raised Sony from a “hold” to a “strong-buy” rating on October 16, 2023. Additionally, Nomura upgraded the stock from a “neutral” to a “buy” rating, reflecting growing confidence among analysts.

As it stands, one research analyst has assigned a rating of “Strong Buy,” while seven others have issued a “Buy” rating for the company. According to MarketBeat, the stock currently holds an average rating of “Buy” with a target price of approximately $33.00.

Sony Stock Performance and Market Insights

On the trading front, Sony shares opened at $27.79 on Friday, experiencing a decline of 2.7%. The stock has fluctuated significantly over the past year, with a fifty-two week low of $18.97 and a high of $30.34. The current moving averages reflect a 50-day price of $28.94 and a 200-day price of $27.01.

Sony’s market capitalization stands at $168.03 billion, with a price-to-earnings (P/E) ratio of 22.05 and a beta of 0.99. The company maintains a solid financial position, evidenced by a debt-to-equity ratio of 0.16, a quick ratio of 1.03, and a current ratio of 1.09.

Founded in Japan, Sony Group Corporation designs, develops, and produces a wide range of electronic equipment and devices for various markets globally, including the United States, Europe, and Asia. The company is a key player in distributing software titles and digital content across its gaming, video, and music platforms.

As investors and analysts continue to evaluate Sony’s performance, the recent adjustments in holdings and positive ratings may signal a robust outlook for the company moving forward.