SoundThinking (NASDAQ:SSTI) Upgrade to 'Buy' by Craig Hallum

On February 20, 2025, SoundThinking (NASDAQ:SSTI) received a positive update from Craig Hallum, which upgraded the company's stock rating from “hold” to “buy.” This change reflects confidence in the company's future performance and potential growth opportunities in the market.

Other investment firms have also recently provided their assessments of SoundThinking. On November 13, JMP Securities decreased their target price from $25.00 to $19.00, while maintaining a “market outperform” rating on the stock. Following that, Cantor Fitzgerald announced an upgrade to a “strong-buy” rating on November 14. In total, market analysts have provided a mix of ratings on SSTI, with one analyst suggesting a hold, four recommending a buy, and one issuing a strong buy. According to data compiled from MarketBeat.com, the consensus rating for SoundThinking stands at “Buy,” with an average target price established at $21.20.

SoundThinking's Stock Performance Metrics

As of Tuesday, SSTI's stock opened at $15.12. The stock has exhibited a range over the past year, hitting a low of $9.33 and a high of $18.70. The company's 50-day moving average sits at $13.15, while the 200-day moving average is recorded at $12.82. SoundThinking's current market capitalization is approximately $190.36 million, with a notable price-to-earnings ratio of -125.99 and a beta value of 1.18, indicating a slightly above-average volatility compared to the market.

Insider Trading Activity

In related developments, CEO Ralph A. Clark sold 5,933 shares of SoundThinking stock on December 16, 2024, at an average price of $11.61, resulting in a total sale value of approximately $68,882. Following this transaction, Clark's total holdings amount to 520,774 shares, valued at around $6,046,186. This sale represents a decrease of 1.13% in his ownership stake. Additionally, CFO Alan R. Stewart sold 15,000 shares on December 10, 2024, for a total of $209,250. After this transaction, Stewart now holds 138,851 shares worth about $1,936,971. Insiders collectively have sold 24,632 shares in the last 90 days, which amounts to approximately $325,036. Current insider ownership stands at around 9.20% of the company’s total shares.

Institutional Investment Activity

In terms of institutional investment, several entities have recently modified their positions in SoundThinking. Disciplined Growth Investors Inc. from Minnesota acquired a new stake valued at $5,354,000 during the third quarter. Similarly, Kopion Asset Management LLC increased its stake by 24.2% in the fourth quarter, holding 727,144 shares now valued at approximately $9,497,000 after an additional purchase of 141,630 shares. Furthermore, Rice Hall James & Associates LLC raised its stake by 56.6%, owning 362,144 shares valued at $4,197,000 after acquiring an additional 130,913 shares. Wells Fargo & Company also increased its holdings by 681.6%, now owning 45,468 shares valued at $594,000 after a purchase of 39,651 additional shares. Overall, institutions own about 60.74% of SoundThinking’s stock, indicating strong institutional interest and support for the company.

Overview of SoundThinking

SoundThinking, Inc. is a company focused on public safety technology. It offers innovative solutions and strategic advisory services for law enforcement and civic leaders. The company's flagship product, the SafetySmart Platform, is a comprehensive suite of data-driven tools designed to enhance the efficiency of public safety outcomes for law enforcement and community organizations involved in violence prevention and health services.

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