Sono-Tek CFO sells $14,480 in company stock

In a recent transaction disclosed to the public, Stephen James Bagley, the Chief Financial Officer (CFO) of Sono-Tek Corporation (OTC:SOTK), sold shares of the company's common stock. The sale, which occurred on August 9, 2024, involved 4,000 shares at a price of $3.62 per share, totaling $14,480.

Sono-Tek Corporation, known for its specialization in special industry machinery, is based in Milton, New York, and operates within the technology sector. The company's shares are traded under the ticker symbol SOTK on the OTC markets.

The transaction was reported in a Form 4 filing with the Securities and Exchange Commission, which requires insiders to disclose trades in their company's shares. Post-transaction, Bagley's ownership in Sono-Tek Corporation stands at 43,434 shares of common stock.

Investors often monitor insider trades such as these to gain insights into the executives' perspectives on the financial health and future prospects of their companies. While the reasons behind Bagley's decision to sell shares at this time are not disclosed in the filing, the transaction provides current shareholders and potential investors with up-to-date information on the CFO's stake in the company.

The filing was signed by Stephen J. Bagley on August 12, 2024, affirming the accuracy of the reported information. Such disclosures are part of the regulatory requirements that ensure transparency in the financial markets, allowing stakeholders to stay informed about significant insider transactions.

In other recent news, Sono-Tek Corporation has achieved a significant milestone with the largest order in its history, a $2.95 million purchase from an existing clean energy client. The order, part of a larger multi-system program, includes four production-scale systems set to be shipped in the first half of fiscal 2026. This recent development adds to the four production-scale machines previously delivered, bringing the client's total to eight Sono-Tek machines.

Sono-Tek also reported record-breaking revenue for the fourth quarter and full fiscal year of 2024, with a 31% increase in sales reaching $19.7 million. The company saw a net income increase of 127% to $1.4 million and holds over $12 million in cash with no debt.

Looking ahead, Sono-Tek expects strong revenue growth in fiscal year 2025, projecting over 30% in Q1 and 8-10% year-over-year growth. Despite a slight decrease in gross profit margin due to increased expenses, the company's strategic shift towards larger customized systems has resulted in multiple and repeat orders, improving its competitive position. These are the recent developments that investors should be aware of.

InvestingPro Insights

In light of the recent insider selling by Sono-Tek Corporation's CFO, Stephen James Bagley, current and potential investors might be seeking additional context to assess the company's financial position. According to InvestingPro data, Sono-Tek has a market capitalization of approximately $56.7 million. The company's P/E ratio stands at 33.39, reflecting investor sentiment on its earnings potential. Notably, Sono-Tek has demonstrated robust revenue growth over the last twelve months as of Q1 2023, with an increase of 44.62%, signaling a strong upward trend in sales.

InvestingPro Tips suggest that Sono-Tek holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Additionally, the company's liquid assets exceed short-term obligations, providing further confidence in its ability to meet immediate financial commitments. These factors may be particularly relevant for investors considering the implications of the CFO's share sale.

For those interested in a deeper analysis, InvestingPro offers additional insights. There are currently 9 more InvestingPro Tips available for Sono-Tek, which can be accessed to help investors make more informed decisions. These tips include observations on the company's stock price movements, valuation multiples, and profitability forecasts.

As investors ponder the significance of insider transactions, such as the one executed by Bagley, having access to comprehensive financial data and expert analysis could prove invaluable. Sono-Tek's recent performance metrics and the additional InvestingPro Tips provide a broader context for understanding the company's financial health and future prospects.

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