SoundThinking (NASDAQ:SSTI) Rating Lowered to “Hold” at Northland Securities

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.

SSTI has been the subject of several other research reports. Zacks Research upgraded shares of SoundThinking from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 14th. Wall Street Zen downgraded SoundThinking from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 15th. Cantor Fitzgerald reduced their price objective on SoundThinking from $10.00 to $8.00 and set a “neutral” rating for the company in a report on Friday, August 14th. Weiss Ratings raised SoundThinking from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Monday, September 14th. Finally, Citigroup restated a “market perform” rating on shares of SoundThinking in a research note on Wednesday. Eight investment 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.com, SoundThinking currently has a consensus rating of “Reduce” and a consensus target price of $10.00.

SoundThinking Stock Performance

SSTI opened at $8.31 on Tuesday. The firm has a market cap of $107.61 million, a P/E ratio of -6.44 and a beta of 1.16. The firm has a 50-day moving average of $6.71 and a 200 day moving average of $7.12. SoundThinking has a fifty-two week low of $5.41 and a fifty-two week high of $12.24.

SoundThinking (NASDAQ:SSTI) last announced its quarterly earnings data on Thursday, August 13th. The company reported ($0.37) EPS for the quarter, missing the consensus estimate of ($0.25) by ($0.12). The company had revenue of $23.89 million during the quarter, compared to the consensus estimate of $25.77 million. SoundThinking had a negative return on equity of 23.77% and a negative net margin of 16.92%. Equities research analysts predict that SoundThinking will post -1.06 earnings per share for the current fiscal year.

Institutional Trading of SoundThinking

Several hedge funds and other institutional investors have recently modified their holdings of the business. Hsbc Holdings PLC purchased a new stake in shares of SoundThinking during the 2nd quarter valued at approximately $367,000. Ieq Capital LLC bought a new stake in SoundThinking during the 2nd quarter valued at $193,000. Great Lakes Advisors LLC purchased a new stake in shares of SoundThinking during the second quarter worth $272,000. BlackRock Inc. purchased a new stake in shares of SoundThinking during the second quarter worth $3,240,000. Finally, Rice Hall James & Associates LLC bought a new position in shares of SoundThinking in the second quarter worth $4,225,000. Institutional investors own 60.74% of the company’s stock.

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.