SoundThinking Inc. (NASDAQ:SSTI) Executive Vice President of Investigative Solutions, Nasim Golzadeh, has sold a total of 161 shares of the company's common stock, according to the latest SEC filings. The transaction, which took place on June 10, 2024, was executed at a price of $14.56 per share, resulting in a total sale value of $2,344.
The sale by Golzadeh is part of a prearranged plan to sell only the number of shares necessary to cover applicable tax withholding obligations upon the vesting of restricted stock units, along with any related brokerage commission fees. This transaction comes after Golzadeh's recent acquisition of shares under the company's Employee Stock Purchase Plan, which added 1,052 shares on May 16, 2024, and 729 shares on May 16, 2023, to their holdings.
Following the sale, Golzadeh's remaining direct ownership in SoundThinking Inc. stands at 69,764 shares. The company, formerly known as ShotSpotter Inc., is recognized in the industry for its prepackaged software services and continues to make strides in the technology sector.
Investors often monitor insider transactions as they can provide insights into the company's performance and executive confidence in the business. The sale by a high-ranking executive like Golzadeh may draw particular attention from the market and SoundThinking's stakeholders.
The details of the transaction were made public through SEC Form 4 filings, which are required for insider trading disclosures. The filings provide transparency into the trading activities of company executives, directors, and significant shareholders.
In other recent news, SoundThinking, Inc. reported robust growth in the first quarter of 2024, with a 23.2% year-over-year increase in revenue, amounting to $25.4 million. This growth was driven by the company's strategic expansion, including the addition of 10 new cities to its coverage area. Despite increased operating expenses leading to missed EPS and EBITDA estimates, analysts from firms such as Cantor Fitzgerald and JMP Securities maintain a positive outlook for the company, projecting a full-year revenue of $104-106 million.
Analyst firms have adjusted their stance on SoundThinking following these recent developments. William Blair downgraded the company's stock rating from Outperform to Market Perform due to sales issues in Chicago. Meanwhile, Craig-Hallum lowered its price target for the company to $19 from $22, citing increased spending on strategic planning.
SoundThinking's commitment to growth is evidenced by its product expansion and international market penetration. The company's SafePointe product is expected to double its current annual recurring revenue of approximately $5 million next year. Additionally, SoundThinking's international expansion into markets like Uruguay, Brazil, Mexico, and Ecuador signifies its ambition to tap into new revenue streams.
Despite a net loss for the quarter, SoundThinking remains optimistic about its future, reaffirming its revenue guidance of $104 million to $106 million for the full year. The company's financial health appears solid, with a cash balance improvement to $8.5 million attributed to effective cash management. However, concerns remain over higher General & Administrative expenses, which have impacted the adjusted EBITDA.
InvestingPro Insights
In light of the recent insider trading activity at SoundThinking Inc. (NASDAQ:SSTI), investors are keeping a close eye on the company's financial health and market performance. According to InvestingPro data, SoundThinking Inc. currently has a market capitalization of $183.59 million. Despite a challenging period, the company has managed to maintain a revenue growth of 21.26% over the last twelve months as of Q1 2024. This shows a resilient performance in generating sales despite market conditions.
However, the company's stock has experienced significant volatility, with a 6-month price total return of -41.48%, reflecting investor concerns and market reactions. This could be partly attributed to the InvestingPro Tips indicating that analysts have revised their earnings downwards for the upcoming period and do not anticipate the company to be profitable this year. Additionally, SoundThinking Inc. is trading at a high EBITDA valuation multiple, which may suggest that the stock is priced optimistically relative to its earnings before interest, taxes, depreciation, and amortization.
For investors seeking a deeper analysis and more comprehensive insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/SSTI. These tips provide valuable information that could help investors make more informed decisions regarding SoundThinking Inc. For those interested in accessing these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 9 additional InvestingPro Tips listed, subscribers can gain a more nuanced understanding of the company's financial outlook and potential investment risks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.