SoundThinking, Inc. (NASDAQ:SSTI) executive Nasim Golzadeh, who serves as EVP of MD Technologic Investigative Solutions, recently sold company shares totaling over $10,000. The sale occurred on September 3, 2024, as reported in a regulatory filing with the SEC.
Golzadeh disposed of 742 shares at prices ranging from $13.47 to $13.75 per share, bringing the total value of the sale to approximately $10,200. Following the transaction, the executive continues to hold 68,247 shares of SoundThinking, Inc. The company, formerly known as ShotSpotter, specializes in prepackaged software services and is based in Fremont, California.
The sale was part of a pre-arranged plan to sell only the number of shares necessary to cover applicable tax withholding obligations upon the vesting of restricted stock units, as well as any related brokerage commission fees. This indicates a planned financial move rather than a spontaneous market action.
Investors often monitor insider transactions as they may provide insights into an executive’s perspective on the company’s current valuation and future prospects. However, it is also not uncommon for executives to sell shares for personal financial planning purposes unrelated to their outlook on the company’s performance.
For those interested in the specifics of the transactions, including the exact number of shares sold at each price point, Golzadeh has agreed to provide full information upon request to the SEC, SoundThinking, or any of the company’s security holders.
As of the latest filing, SoundThinking, Inc. continues its operations in the technology sector, providing innovative solutions through its software services.
In other recent news, SoundThinking has reported a strong financial performance in the second quarter of 2024, with a substantial 22% increase in revenues to $27 million compared to the same period last year. The company’s flagship acoustic gunshot detection system, ShotSpotter, has broadened its reach into new cities and sectors, including commercial and university settings. Internationally, SoundThinking has also grown, expanding into Uruguay and South Africa.
A strategic partnership with Rekor for the PlateRanger product is expected to strengthen the company’s SafetySmart platform starting in September 2024. Adjusted EBITDA saw a significant increase of over 110% to $5.1 million. Despite anticipating lower revenues in Q3 due to an acceleration of professional services in Q2, SoundThinking maintains a positive outlook for Q4 and the full year.
The company’s gross profit reached $16.1 million, which represents 60% of revenue. SoundThinking’s full-year revenue guidance remains at $104 million to $106 million, with an adjusted EBITDA margin of 18% to 20%. The company is also expecting to finalize a contract renewal proposal with the NYPD before the end of Q4.
InvestingPro Insights
Recent market activities show that SoundThinking, Inc. (NASDAQ:SSTI) has experienced notable fluctuations, with the stock taking a significant hit over the last week, as indicated by a 1-week price total return of -8.24%. This dip in share price coincides with the executive share sale, potentially reflecting broader market trends or investor reactions to insider transactions.
InvestingPro data reveals that SoundThinking, Inc. has a market capitalization of $171.8 million, and despite a positive revenue growth of 24.16% over the last twelve months as of Q2 2024, the company’s P/E ratio stands at -91.07, suggesting that investors may have concerns about the company’s profitability in the near term. This is further supported by an InvestingPro Tip noting that analysts do not anticipate the company will be profitable this year, which aligns with the executive’s decision to sell shares for tax withholding on vested restricted stock units.
Moreover, the company’s current valuation implies a strong free cash flow yield, which could be an attractive point for investors looking for potential long-term value in the face of short-term income fluctuations. However, it’s important to note that the company is not expected to pay dividends to shareholders, as indicated by the InvestingPro Tips, which may influence investment decisions for those seeking regular income streams from their equity investments.
For a deeper analysis of SoundThinking, Inc.’s financial health and future prospects, interested investors can find additional InvestingPro Tips on https://www.investing.com/pro/SSTI, which provides a comprehensive set of data points and insights.
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