Northland Capital Markets Lowers SoundThinking Earnings Forecast

On March 1, 2025, it was reported that Northland Capital Markets has revised its earnings per share (EPS) estimates for SoundThinking, Inc. (NASDAQ:SSTI) for the first quarter of 2025. In a research note published on February 25, analyst M. Latimore from Northland Capital Markets now projects an EPS of ($0.33) for SoundThinking in Q1 2025, a decrease from the prior forecast of ($0.11).

The current consensus estimate for SoundThinking's overall earnings for the full year is ($0.42) per share. Additionally, Northland Capital Markets has provided future earnings estimates for the company, predicting an EPS of ($0.03) for Q2 2025, $0.08 for both Q3 and Q4 2025, and a total EPS of ($0.21) for FY2025.

Alongside these estimates, several other research firms have offered insights on SoundThinking. Cantor Fitzgerald reaffirmed an “overweight” rating with a target price of $20.00 for the stock. Meanwhile, Craig Hallum upgraded SoundThinking from a “hold” to a “buy” rating just a week earlier. JMP Securities has also reduced its price target on SoundThinking from $25.00 to $19.00 while maintaining a “market outperform” rating. Overall, one research analyst has rated the stock as a hold, while five others have given it a buy rating. Data gathered from MarketBeat indicates the stock currently holds a consensus rating of “Moderate Buy” with an average target price of $21.20.

SoundThinking's Stock Overview

As of the last trading day, SoundThinking's stock opened at $16.43. The company holds a market capitalization of approximately $206.84 million and has a price-to-earnings (P/E) ratio of -136.91. The stock has been fluctuating, with a fifty-day moving average recorded at $13.47 and a two-hundred-day moving average at $12.86. The stock's performance over the past year shows a low of $9.33 and a high of $18.38.

In its latest earnings report, SoundThinking announced an EPS of ($0.32) for the quarter ended February 25, missing analysts' expectations by $0.30. Additionally, the company reported revenues of $23.41 million, which also fell short of the anticipated $26.65 million. This led to a negative return on equity of 8.74% and a negative net margin of 1.39%.

Insider Trading Activities

In recent news regarding insider transactions, CEO Ralph A. Clark sold 5,933 shares on December 16, 2024, at an average price of $11.61, totaling $68,882.13. Following this transaction, Clark’s ownership in SoundThinking decreased slightly to approximately 520,774 shares, valued around $6 million. CFO Alan R. Stewart also sold 15,000 shares on December 10, resulting in a 9.75% reduction in his total shares, now holding 138,851 shares valued at nearly $1.94 million. Over the last 90 days, insiders have sold 23,350 shares valued at approximately $308,032. Insiders currently hold about 9.20% of the company's stock.

Hedge Fund Activities

Recent activity among hedge funds shows a range of adjustments to their stakes in SoundThinking. Pullen Investment Management LLC increased its share of the company by 61.1% in the fourth quarter, now owning 142,040 shares worth about $1.86 million after acquiring an additional 53,888 shares. Additionally, Mackenzie Financial Corp has taken a new position valued at around $560,000 during the same period. Two Sigma Advisers LP also saw its holdings rise by 80.6%, owning 18,600 shares worth $243,000. Lastly, Sherbrooke Park Advisers LLC raised its stake by 18.2%, controlling 23,302 shares valued at approximately $304,000. Institutional and hedge fund investors collectively own about 60.74% of SoundThinking's stock.

About SoundThinking

SoundThinking, Inc. provides transformative solutions and advisory services aimed at enhancing public safety for law enforcement and civic leaders. It offers the SafetySmart Platform, a comprehensive suite of tools focused on data-driven strategies for improving public safety outcomes.

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