SoundThinking (NASDAQ:SSTI) Downgraded by Northland Securities to “Hold”

SoundThinking (NASDAQ:SSTI) was downgraded by investment analysts at Northland Securities from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday, Zacks reports.

Other equities analysts have also issued research reports about the company. Jefferies Financial Group set a $9.00 target price on SoundThinking in a research report on Wednesday. Citigroup reaffirmed a “market perform” rating on shares of SoundThinking in a report on Wednesday. Roth Capital lowered shares of SoundThinking from a “buy” rating to a “neutral” rating and set a $9.00 price target for the company. in a research note on Wednesday. Citizens Jmp reissued a “market perform” rating on shares of SoundThinking in a report on Friday, August 14th. Finally, Lake Street Capital downgraded shares of SoundThinking from a “buy” rating to a “hold” rating and set a $8.00 price objective on the stock. in a research report on Friday, August 14th. Eight investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, SoundThinking currently has a consensus rating of “Reduce” and an average target price of $10.00.

SoundThinking Trading Up 1.2%

SSTI stock 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. SoundThinking has a 12-month low of $5.41 and a 12-month high of $12.24. The stock’s 50 day simple moving average is $6.71 and its 200 day simple moving average is $7.12.

SoundThinking (NASDAQ:SSTI) last posted its quarterly earnings results on Thursday, August 13th. The company reported ($0.37) earnings per share for the quarter, missing the consensus estimate 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%. On average, research analysts predict that SoundThinking will post -1.06 earnings per share for the current year.

Institutional Investors Weigh In On SoundThinking

Large investors have recently made changes to their positions in the company. Royal Bank of Canada increased its position in shares of SoundThinking by 88.6% during the 1st 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 boosted its holdings in shares of SoundThinking by 31.7% in the second quarter. Versant Capital Management Inc now owns 9,305 shares of the company’s stock worth $84,000 after buying an additional 2,239 shares during the last quarter. Sei Investments Co. purchased a new position in shares of SoundThinking in the first quarter worth approximately $92,000. Bank of America Corp DE boosted its holdings in shares of SoundThinking by 16.2% in the first quarter. Bank of America Corp DE now owns 14,299 shares of the company’s stock worth $95,000 after buying an additional 1,992 shares during the last quarter. Finally, Ieq Capital LLC bought a new stake in SoundThinking during the second quarter valued at approximately $193,000. 60.74% of the stock is currently owned by institutional investors.

Key Stories Impacting SoundThinking

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.

About SoundThinking

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.