Gut Call On ShotSpotter, Inc. (SSTI): Now It’s Really Down Too Much

ShotSpotter, Inc. (NASDAQ:SSTI) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 4.94% or 2.18 points lower from last closing price of $44.1, reaching $41.92 at last check. Any clue why there is so much of action in the SSTI stock? The share price has dropped in 4 of the last 5 days and is down -2.82% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -62,300 shares, and in total 126600 shares valued at $5.307 million were seen changing hands compared with 188900 shares valued at $8.33 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the SSTI stock is near its bottom.

ShotSpotter, Inc. (SSTI) shares have notched a 3-month decline of about -2.82%, but has still advanced 41.44% year to date. By comparison, the stock added 21.25% over the past 12 months, while it slipped -19.6% over the 1 month. The company’s market cap is around $503.18M, with its short interest ratio standing at 11.93%.

In the current trading session for SSTI, the stock witnessed two major price actions, it rose to a high of $45.25 and was down as much as $41.68 at one point. The high recorded is very low when compared to their 52-week high which is $26.55. The 52-week high is now at -36.76 distance from current price. Their recent low of $66.14 represents a 57.55% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for SSTI is $56, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of ShotSpotter, Inc. earned $-0.17 per share in the trailing 12 months and has a P/E ratio of -246.59. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 144.56 and lower compared to the sector’s average of 13.27. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. SSTI also has P/S multiple of 12.79. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 9.65x.

The company recorded an interesting insider sale transaction by the Director on Jun 10, 2019. A Securities and Exchanges Commission filings show that Thomas T Groos sold a total of 55,000 SSTI shares that day for a sum of around $2,470,050. ShotSpotter, Inc. (SSTI) insiders have acquired 340 shares in the stock within the past three months. In total, individual insiders traded 25,379 shares in the business, which makes up 5.626% of 451,068 shares that were traded over a year. In the past 12 months, insiders have purchased 40,056 shares while the seller parted with 411,012 shares.

SSTI‘s last price was down -5.64% as compared to the average trading price of 50 days recorded at $44.43 while enlarging the period to 200 trading days, the average closing price was $47.88. At present, there are 11.41 million in the total number of common shares owned by the public and among those 7.68 million shares have been available to trade. The percentage of shares being held by the company management was 6.4% while institutions stake was 62.6%. The company has generated negative returns on equity over the last 12 months (-9.6%). It managed to keep its gross profit margin at 58.5% over the past 12 months.

When assessing the full upside of the SSTI stock, there is another set of technicals that should be looked into and considered. Its -9.35% decline from moving average of $46.24 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 0 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of ShotSpotter, Inc. — 7 analysts rate the stock as a buy with another 0 rating it strong buy. There are 2 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $53.2986 on shares of ShotSpotter, Inc. (NASDAQ:SSTI), which corresponds to 26.75% upside potential than its current market price of $41.92 and implies potential despite the recent drop in the price. However, their current target price has fallen from $53.2986 a month ago and is up handily from the consensus target of $52.2613 a quarter ago.

Let’s briefly check the hedge fund interest towards SSTI stock. Marshall Wace LLP added position in the company after it grew 50% or 1,892 shares of its common stock. The hedge fund now owns 2,838 shares worth $118,969, SEC documents show. Gilder Gagnon Howe & Co. LLC cut assets in the stock as 2187589 shares have been sold, reducing its stake by -0.5% to 2,176,651 shares which are currently valued at $91,245,210. In addition, FMR LLC recently reported that it now owns 320,132 shares making a total of $13,419,933 based on the recent price. This refelects a change of -55.5% in their ownership.