SoundThinking, Inc. (NASDAQ:SSTI) Receives Average Recommendation of "Hold" from Analysts

Key Points

• SoundThinking has an average analyst rating of Hold, with seven firms covering the stock: one sell, three hold, and three buy ratings. The consensus 12-month price target is $14.00.
• The company reported a wider-than-expected Q1 loss of $0.54 per share and revenue of $24.18 million, which missed estimates. Revenue also fell 15% year over year, partly due to a difficult comparison with prior-year New York City Police Department contract renewals.
• Despite the weak quarter, management reaffirmed full-year 2026 guidance for revenue of $109 million to $111 million and adjusted EBITDA margin of 16% to 18%. The company also expects annual recurring revenue to grow from $95.4 million at the start of 2026 to about $110 million at the start of 2027.

SoundThinking, Inc. (NASDAQ:SSTI - Get Free Report) has earned an average rating of "Hold" from the seven brokerages that are covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, three have given a hold recommendation and three have issued a buy recommendation on the company. The average 12-month price objective among brokers that have covered the stock in the last year is $14.00.

Several analysts recently issued reports on SSTI shares. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundThinking in a report on Friday, March 27th. Wall Street Zen raised shares of SoundThinking from a "sell" rating to a "hold" rating in a report on Saturday, April 4th.

Key Stories Impacting SoundThinking

Here are the key news stories impacting SoundThinking this week:

• Negative Sentiment: SoundThinking reported a wider-than-expected Q1 loss of $0.54 per share versus an expected loss of $0.24, while revenue of $24.18 million also came in slightly below estimates. Article: SoundThinking (SSTI) Reports Q1 Loss, Misses Revenue Estimates
• Negative Sentiment: Revenue fell 15% year over year, largely because last year’s quarter included about $3.5 million from delayed New York City Police Department contract renewals, underscoring lumpy top-line comparisons. Article: SoundThinking, Inc. Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Management reaffirmed FY 2026 revenue guidance of $109 million to $111 million and adjusted EBITDA margin guidance of 16% to 18%, which may help limit downside by signaling confidence in the full-year outlook. Article: SoundThinking, Inc. Reports First Quarter 2026 Financial Results
• Neutral Sentiment: The company reiterated expectations for annual recurring revenue to rise from $95.4 million at the start of 2026 to about $110 million at the start of 2027, suggesting steady longer-term subscription growth. Article: SoundThinking, Inc. Reports First Quarter 2026 Financial Results
• Positive Sentiment: Investors may also view the company’s new executive appointment and strategic commentary as supportive of execution, though these updates are likely secondary to the earnings miss. Article: SoundThinking Appoints David Jochim as Senior Vice President of TechnoLogic and Professional Services

Insider Activity

In other news, major shareholder Veradace Partners Lp acquired 15,773 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The stock was acquired at an average cost of $7.14 per share, with a total value of $112,619.22. Following the acquisition, the insider owned 2,039,905 shares in the company, valued at approximately $14,564,921.70. This represents a 0.78% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Over the last ninety days, insiders have acquired 137,417 shares of company stock worth $979,843. 10.40% of the stock is currently owned by corporate insiders.

Institutional Trading of SoundThinking

Several large investors have recently modified their holdings of the company. Kopion Asset Management LLC boosted its holdings in SoundThinking by 52.1% in the 4th quarter. Kopion Asset Management LLC now owns 972,108 shares of the company's stock valued at $7,806,000 after purchasing an additional 333,170 shares during the period. Quantinno Capital Management LP increased its holdings in shares of SoundThinking by 264.8% during the 1st quarter. Quantinno Capital Management LP now owns 236,581 shares of the company's stock worth $1,566,000 after purchasing an additional 171,733 shares during the period. Wasatch Advisors LP increased its holdings in shares of SoundThinking by 42.9% during the 2nd quarter. Wasatch Advisors LP now owns 534,237 shares of the company's stock worth $6,974,000 after purchasing an additional 160,451 shares during the period. Yost Capital Management LP raised its position in shares of SoundThinking by 62.3% during the third quarter. Yost Capital Management LP now owns 292,200 shares of the company's stock valued at $3,524,000 after buying an additional 112,200 shares during the last quarter. Finally, Mackenzie Financial Corp raised its position in shares of SoundThinking by 50.2% during the fourth quarter. Mackenzie Financial Corp now owns 203,411 shares of the company's stock valued at $1,640,000 after buying an additional 67,981 shares during the last quarter. 60.74% of the stock is owned by institutional investors.

SoundThinking Price Performance

SSTI stock opened at $6.62 on Monday. The company has a market capitalization of $85.73 million, a price-to-earnings ratio of -5.71 and a beta of 1.17. SoundThinking has a 12 month low of $5.78 and a 12 month high of $16.92. The firm has a 50 day moving average of $6.71 and a two-hundred day moving average of $7.27.

SoundThinking (NASDAQ:SSTI - Get Free Report) last posted its earnings results on Thursday, May 14th. The company reported ($0.54) EPS for the quarter, missing the consensus estimate of ($0.24) by ($0.30). The business had revenue of $24.18 million during the quarter, compared to the consensus estimate of $24.27 million. SoundThinking had a negative return on equity of 20.35% and a negative net margin of 14.95%. On average, research analysts expect that SoundThinking will post -0.45 EPS for the current fiscal year.

SoundThinking Company Profile

SoundThinking, Inc, a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact.

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