Nasim Golzadeh, CEO of SoundThinking, Inc. (NASDAQ:SSTI) and executive vice president of Investigative Solutions, recently sold a portion of his stake in the company. The deal involved the sale of 166 shares of common stock on September 10, at prices ranging from $11.92 to $12.01, for a total of nearly $2,000.
The sale was made pursuant to a prior election made by Gulzadeh to sell only the number of shares necessary to cover the applicable tax withholding obligations arising upon the grant of the restricted stock units, plus any related brokerage commission fees. Following the transaction, Gulzadeh continues to hold 68,081 shares of SoundThinking, indicating a sustained interest in the success of the company.
Investors and shareholders may request full information on the exact number of shares sold at each price from Golzadeh, according to a footnote in the SEC filing. The CEO’s remaining shares in the company represent a continuing investment in the future of SoundThinking, aligning their interests with those of shareholders.
This latest sale provides an overview of the trading activities of SoundThinking executives and may serve as a point of information for investors monitoring insider trading. It is not uncommon for executives to sell shares for personal financial planning purposes, and such sales are regularly reported to the Securities and Exchange Commission for transparency.
In other recent news, SoundThinking reported strong financial performance in Q2 2024, with revenue up 22% to $27 million compared to the same period last year. The company’s flagship acoustic gunshot detection system, ShotSpotter, has expanded into new cities and sectors, including commercial and university environments. New expansions have been made in Uruguay and South Africa, and a strategic partnership with Rekor for PlateRanger is expected to bolster the company’s SafetySmart platform starting in September 2024.
Adjusted EBITDA increased by more than 110% to $5.1 million. Despite the expected decline in revenue in the third quarter due to the acceleration in professional services in the second quarter, SoundThinking maintains a positive outlook for the fourth quarter and the full year, maintaining revenue guidance at $104 million to $106 million. Gross profit was $16.1 million, representing 60% of revenue.
The company expects gross margin to decline slightly in the third quarter, with a rebound in the fourth quarter. The contract renewal proposal with the NYPD is expected to be finalized before the end of the fourth quarter. SoundThinking also reported that its CaseBuilder subscription revenue grew 700% year over year and expects to surpass 100 new ShotSpotter miles this year.
InvestingPro Insights
As investors digest the news that Executive Vice President Nasim Golzadeh recently sold his shares in SoundThinking, Inc. (NASDAQ:SSTI), it’s important to look at the company’s broader financial health and market performance. SoundThinking has a market cap of $164.52 million, reflecting the company’s size in the competitive tech landscape. Despite the insider selling, the company’s valuation suggests a strong free cash flow yield, a tip from InvestingPro that could indicate potential for long-term shareholder value creation.
On the earnings front, analysts have lowered their forecasts, with three analysts revising their earnings downward for the coming period, and one InvestingPro tip pointed to the potential for headwinds or a conservative growth outlook for SoundThinking. This is in line with expectations for lower net income this year, something investors should take into account when assessing the company’s earnings potential going forward.
SoundThinking’s revenue growth has been strong, with an increase of 24.16% in the past twelve months as of Q2 2024. However, the company is trading at a high valuation multiple before interest, taxes, depreciation and amortization, which, when combined with the absence of dividend payments to shareholders, may suggest that the market has priced in high growth expectations. For investors seeking detailed analysis and additional insights, there are more InvestingPro tips available, which provide a comprehensive look at SoundThinking’s financial and market performance.
For those interested in digging deeper, SoundThinking offers a total of 9 InvestingPro Tips, which can be accessed for more accurate investment considerations. With the next earnings date approaching on November 5, 2024, these insights could prove invaluable to investors looking to understand the company’s trajectory and make informed decisions.
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