SoundThinking (NASDAQ:SSTI) Stock Rating Cut to Hold at Northland Securities

Key Points

• Northland Securities downgraded SoundThinking from “strong buy” to “hold.” MarketBeat reports that eight analysts rate the stock Hold and one rates it Sell, resulting in a consensus “Reduce” rating and an average price target of $10.
• SoundThinking reported a quarterly loss of $0.37 per share, missing the $0.25 consensus estimate, while revenue of $23.89 million also fell short of expectations. The company has negative profitability metrics, and analysts forecast a full-year loss of $1.06 per share.
• Transom Capital Group has agreed to acquire SoundThinking for $8.00 per share in cash plus a contingent value right worth up to $3.00 per share. The deal could take SoundThinking private in the fourth quarter of 2026, though the additional payment is conditional and the transaction faces shareholder and completion risks.

SoundThinking (NASDAQ:SSTI - Get Free Report) was downgraded by equities research analysts at Northland Securities from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday, Zacks reports.

Several other equities research analysts have also recently commented on the stock. Citizens Jmp reaffirmed a "market perform" rating on shares of SoundThinking in a research report on Friday, August 14th. Jefferies Financial Group set a $9.00 price target on shares of SoundThinking in a research report on Wednesday. Zacks Research raised shares of SoundThinking from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 14th. Weiss Ratings upgraded shares of SoundThinking from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, September 14th. Finally, Cantor Fitzgerald cut their price objective on SoundThinking from $10.00 to $8.00 and set a "neutral" rating on the stock in a research report on Friday, August 14th. Eight equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $10.00.

SoundThinking Stock Performance

SSTI opened at $8.31 on Tuesday. The stock has a market capitalization of $107.61 million, a PE ratio of -6.44 and a beta of 1.16. The stock's 50 day moving average price is $6.71 and its 200-day moving average price is $7.12. SoundThinking has a 52-week low of $5.41 and a 52-week high of $12.24.

SoundThinking (NASDAQ:SSTI - Get Free Report) last announced its quarterly earnings results on Thursday, August 13th. The company reported ($0.37) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.12). The business had revenue of $23.89 million during the quarter, compared to analysts' expectations of $25.77 million. SoundThinking had a negative return on equity of 23.77% and a negative net margin of 16.92%. Research analysts forecast that SoundThinking will post -1.06 EPS for the current fiscal year.

Institutional Investors Weigh In On SoundThinking

Several hedge funds have recently bought and sold shares of SSTI. Royal Bank of Canada lifted its holdings in shares of SoundThinking by 88.6% during the first quarter. Royal Bank of Canada now owns 4,173 shares of the company's stock valued at $28,000 after purchasing an additional 1,960 shares during the last quarter. Versant Capital Management Inc increased its position in SoundThinking by 31.7% during the 2nd quarter. Versant Capital Management Inc now owns 9,305 shares of the company's stock valued at $84,000 after buying an additional 2,239 shares in the last quarter. Sei Investments Co. bought a new position in SoundThinking during the 1st quarter valued at approximately $92,000. Bank of America Corp DE raised its stake in SoundThinking by 16.2% during the first quarter. Bank of America Corp DE now owns 14,299 shares of the company's stock valued at $95,000 after buying an additional 1,992 shares during the last quarter. Finally, Ieq Capital LLC bought a new stake in SoundThinking in the second quarter worth $193,000. Institutional investors own 60.74% of the company's stock.

SoundThinking News Summary

Here are the key news stories impacting SoundThinking this week:

• Positive Sentiment: Transom will pay $8.00 per share in cash plus a non-transferable contingent value right worth up to an additional $3.00 per share, implying maximum consideration of $11.00. The upfront payment represents a 46% premium to SoundThinking’s September 28 closing price, while the transaction has been unanimously approved by the board. SoundThinking acquisition announcement
• Positive Sentiment: Shareholders representing approximately 33% of outstanding shares, including Veradace Partners and Gary Lauder-affiliated entities, have agreed to tender their shares. The deal is expected to close in the fourth quarter of 2026, subject to customary conditions, after which SSTI would become privately held and cease trading on Nasdaq. SoundThinking transaction terms
• Neutral Sentiment: Roth Capital downgraded SoundThinking from Buy to Neutral, likely reflecting that the announced acquisition now limits the stock’s standalone upside and shifts valuation toward the fixed cash consideration and uncertain CVR payments. Roth Capital downgrade
• Negative Sentiment: Several shareholder-rights law firms, including Kahn Swick & Foti, Monteverde & Associates, Ademi and Halper Sadeh, are investigating whether the purchase price and sale process fairly value SSTI and whether insiders received favorable treatment. Such reviews could create litigation, delay or pressure for improved terms. Kahn Swick and Foti investigation
• Negative Sentiment: The additional CVR payment is not guaranteed and depends on SoundThinking achieving specified 2027 revenue milestones. The transaction also requires tenders from at least a majority of shares and remains exposed to competing bids, regulatory issues and deal-completion risk.

SoundThinking Company Profile

SoundThinking, Inc NASDAQ: SSTI is a public safety technology company that provides data-driven tools for law enforcement agencies and communities. The company's platform is designed to help public safety organizations detect, analyze and respond to incidents, with a focus on improving situational awareness and investigative efficiency.

Its product portfolio includes ShotSpotter, a subscription-based acoustic gunshot detection service that uses sensors and software to identify and locate possible gunfire; CrimeTracer, a law enforcement search and investigative analytics platform; and ResourceRouter, which supports data-informed decisions about the deployment of public safety resources.

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