Daniel Loeb’s hedge fund Third Point LLC is reportedly amassing a stake in Sony Corp.
Citing sources familiar with the matter (and who were not named), Reuters reported that Third Point wants the stake to push for a divestment of some of Sony Corp.’s businesses. The Reuters report could not specify the exact amount Third Point has so far accumulated in Sony stock. But the report did mention that the hedge fund company is forming a vehicle expected to range between $500 million and $1 billion in capital, in order to buy more Sony shares (citing the sources).
Sony, once the leader in consumer electronics, is currently facing heated competition in the space from rivals like Apple. Over the past several years, the company has tried to restructure itself by focusing on entertainment and video games. However, Sony’s gaming business growth is apparently tapering off. That could potentially be spurring investors – especially the activist or more influential ones - into looking for avenues and/or strategies to boost growth.
SONY saw its Momentum Indicator move above the 0 level on May 12, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 75 similar instances where the indicator turned positive. In of the 75 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where SONY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SONY advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 357 cases where SONY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for SONY moved out of overbought territory on May 19, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for SONY turned negative on May 24, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SONY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SONY broke above its upper Bollinger Band on May 18, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SONY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.283) is normal, around the industry mean (55.539). P/E Ratio (17.699) is within average values for comparable stocks, (43.321). SONY's Projected Growth (PEG Ratio) (3.633) is slightly higher than the industry average of (2.080). SONY has a moderately low Dividend Yield (0.003) as compared to the industry average of (0.028). P/S Ratio (1.438) is also within normal values, averaging (74.250).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows