SoundThinking (NASDAQ:SSTI) Lowered to Strong Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded SoundThinking to “strong sell” from “sell,” while the broader analyst consensus remains “hold” with a $10.83 price target. Recent firms have generally lowered ratings or price targets, though targets around $8 remain above the stock’s $6.20 price.
• SoundThinking’s latest quarter missed expectations, reporting a $0.37 per-share loss versus a projected $0.25 loss and revenue of $23.89 million versus $25.77 million expected. The company posted negative net margins and return on equity.
• Management reduced its 2026 revenue guidance to $99 million–$100 million from $109 million–$111 million and cut its adjusted EBITDA margin target to 8%–9% from 16%–18%, raising concerns about slowing growth and profitability.

SoundThinking (NASDAQ:SSTI - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "sell" rating to a "strong sell" rating in a research note issued on Saturday.

Other research analysts also recently issued research reports about the stock. Weiss Ratings downgraded shares of SoundThinking from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, July 30th. Zacks Research upgraded SoundThinking from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 14th. Northland Securities set a $10.00 price target on SoundThinking in a research note on Friday. Lake Street Capital cut SoundThinking from a "buy" rating to a "hold" rating and set a $8.00 price target for the company. in a report on Friday. Finally, Cantor Fitzgerald lowered their price target on SoundThinking from $10.00 to $8.00 and set a "neutral" rating on the stock in a research report on Friday. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $10.83.

SoundThinking Price Performance

Shares of NASDAQ SSTI opened at $6.20 on Friday. The stock has a market capitalization of $80.29 million, a price-to-earnings ratio of -4.81 and a beta of 1.16. SoundThinking has a 12 month low of $5.78 and a 12 month high of $13.34. The firm's 50 day simple moving average is $8.21 and its 200-day simple moving average is $7.38.

SoundThinking (NASDAQ:SSTI - Get Free Report) last posted its earnings results on Thursday, August 13th. The company reported ($0.37) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.12). SoundThinking had a negative net margin of 16.92% and a negative return on equity of 23.31%. The firm had revenue of $23.89 million during the quarter, compared to analyst estimates of $25.77 million. Analysts anticipate that SoundThinking will post -0.69 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Quantinno Capital Management LP raised its holdings in SoundThinking by 264.8% in the 1st quarter. Quantinno Capital Management LP now owns 236,581 shares of the company's stock valued at $1,566,000 after buying an additional 171,733 shares during the period. Kopion Asset Management LLC lifted its holdings in shares of SoundThinking by 14.6% in the 2nd quarter. Kopion Asset Management LLC now owns 1,114,648 shares of the company's stock worth $10,088,000 after acquiring an additional 142,346 shares during the last quarter. Rice Hall James & Associates LLC increased its holdings in SoundThinking by 8.9% in the 1st quarter. Rice Hall James & Associates LLC now owns 444,087 shares of the company's stock valued at $2,940,000 after purchasing an additional 36,474 shares during the last quarter. Pullen Investment Management LLC raised its position in SoundThinking by 14.1% in the first quarter. Pullen Investment Management LLC now owns 187,130 shares of the company's stock valued at $1,239,000 after purchasing an additional 23,161 shares during the period. Finally, BlackRock Inc. purchased a new stake in SoundThinking in the second quarter valued at approximately $3,240,000. Institutional investors and hedge funds own 60.74% of the company's stock.

Trending Headlines about SoundThinking

Here are the key news stories impacting SoundThinking this week:

• Positive Sentiment: Analysts still see potential upside: Cantor Fitzgerald set an $8 price target, and Lake Street Capital also maintained an $8 target. Both targets are above the current trading level, although Cantor now rates the shares “neutral” and Lake Street downgraded the stock to “hold.” Cantor Fitzgerald price target report
• Positive Sentiment: Management outlined a 2026 revenue plan of $99 million to $100 million and expects annual recurring revenue to exceed $100 million by the beginning of 2027, suggesting continued growth in the company’s subscription-based public-safety technology business. SoundThinking 2026 revenue plan
• Neutral Sentiment: Citizens JMP reaffirmed its “market perform” rating, indicating no immediate catalyst from its view. Citizens JMP rating report
• Negative Sentiment: Second-quarter results missed expectations: SoundThinking reported a loss of $0.37 per share versus the approximately $0.25-$0.27 consensus loss estimate, while revenue of $23.89 million fell short of the $25.77 million forecast. The loss also widened from $0.24 per share a year earlier. SoundThinking second-quarter results
• Negative Sentiment: The company cut 2026 revenue guidance to $99 million-$100 million from $109 million-$111 million and reduced its adjusted EBITDA margin target to 8%-9% from 16%-18%. The new revenue outlook is also well below the roughly $109.2 million analyst consensus, raising concerns about slowing growth and profitability. SoundThinking financial results and guidance

About SoundThinking

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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