Should I Buy SSTI? SSTI 2026 Analysis

Should You Buy SoundThinking Inc (SSTI) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

7.120

1 Day change

0.85%

52 Week Range

19.430

Analysis Updated At

2026/01/26

SoundThinking Inc (SSTI) is not a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock is currently trading pre-market at $7.395, which is below key resistance levels, and technical indicators suggest a bearish trend. Additionally, insider selling has increased significantly, and there are no recent positive news catalysts or significant congressional trading activity to support a buy decision. While the company has shown some improvement in net income and EPS, revenue and gross margin have declined, and analysts have downgraded the stock due to near-term challenges and uncertainty around growth durability. Given these factors, holding off on investing in SSTI at this time is recommended.

Technical Analysis

The technical indicators for SSTI show a bearish trend. The MACD histogram is negative and expanding (-0.16), RSI is at 29.977 (neutral zone), and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 7.254, with resistance at 8.995. Short-term stock trend analysis suggests a potential decline of -0.19% in the next day and -9.11% in the next month.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

No significant positive catalysts identified. The company's AI product initiatives and customer retention remain strong, but these are overshadowed by near-term challenges.

Neutral/Negative Catalysts

Insider selling has increased by 395.02% over the last month.
Analysts have downgraded the stock, citing delayed deployments, lower guidance, and uncertainty around large contract conversions.
Revenue dropped by -4.38% YoY in Q3 2025, and gross margin declined by -5.02%.
No recent news or congressional trading data to support a positive sentiment.

Financial Performance

In Q3 2025, revenue dropped to $25.1M (-4.38% YoY), while net income improved to -$2.04M (+41.94% YoY). EPS increased to -0.16 (+45.45% YoY), but gross margin declined to 55.26% (-5.02% YoY). The financials indicate some improvement in profitability but highlight challenges in revenue growth and cost management.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have downgraded the stock recently. Cantor Fitzgerald downgraded it to Neutral with a price target of $10 (down from $16), citing near-term challenges and uncertainty. Other firms, including Craig-Hallum and Lake Street, have also lowered price targets and ratings due to missed earnings, delayed contracts, and declining margins. The consensus reflects skepticism about the company's near-term growth prospects.

6 Analyst Rating

Wall Street analysts forecast SSTI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SSTI is 14.2 USD with a low forecast of 10 USD and a high forecast of 20 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Buy

3 Hold

0 Sell

Moderate Buy

Current: 7.060

Low

Averages

14.2

High

Current: 7.060

Low

Averages

14.2

High

Cantor Fitzgerald

Overweight -> Neutral

downgrade

$16 -> $10

AI Analysis

2026-01-07

Reason

Cantor Fitzgerald

Price Target

$16 -> $10

AI Analysis

2026-01-07

downgrade

Overweight -> Neutral

Reason

Cantor Fitzgerald downgraded SoundThinking to Neutral from Overweight with a price target of $10, down from $16. Near-term go-to-market challenges, delayed deployments, and lower FY25-FY26 guidance have reduced confidence in the pace of revenue and margin recovery despite continued product innovation, the analyst tells investors in a research note. Additionally, Cantor says the timing of large contract conversions and international deployments introduces uncertainty around near-term growth durability.

Craig-Hallum

Buy

Hold

downgrade

$10

2025-11-13

Reason

Craig-Hallum

Price Target

$10

2025-11-13

downgrade

Buy

Hold

Reason

Craig-Hallum downgraded SoundThinking to Hold from Buy with a $10 price target.

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SSTI Should I Buy

SSTI Should I Buy

Should You Buy SoundThinking Inc (SSTI) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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