ShotSpotter, Inc. (SSTI) Stock: Is This Technology Stock Worth Your Investment?

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ShotSpotter, Inc. (SSTI) is making a move up in the market today. The stock, focused in the tech industry, is currently trading at $21.64 after gaining 6.39% so far in today’s session. In terms of technology companies, there are a number of factors that have the potential to generate gains in the market. One of the most common is news. Here are the most recent headlines relating to SSTI:

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Nov-12-19 04:05PM ShotSpotter Reports Third Quarter 2019 Financial Results
Nov-06-19 09:58AM Introducing ShotSpotter (NASDAQ:SSTI), The Stock That Slid 51% In The Last Year
Oct-31-19 02:06PM ShotSpotter, Inc. (SSTI) Burned These Hedge Funds
Oct-23-19 08:00AM ShotSpotter Sets Third Quarter 2019 Conference Call for Tuesday, November 12, 2019 at 4:30 p.m. ET
Sep-24-19 04:30PM ShotSpotters Latest U.S. Patent Enables Major Advancement in Machine Learning Accuracy for Its Gunshot Detection Technology

However, any time investors are making an investing decision, prospective investors should look at much more than news, especially in the ever evolving technology sector. Here’s what’s going on with ShotSpotter, Inc..

What We’ve Seen From SSTI

While a gain in a single session, like the gain that we’re seeing from ShotSpotter, Inc. might make some investors excited, a single session gain alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is generally a good idea to look at trends just a single trading day. When it comes to SSTI, below are the returns that investors have experienced:

  • Past 7 Days – In the past seven days, SSTI has produced a price change that amounts to 12.01%.
  • Past Month – The monthly performance from ShotSpotter, Inc. comes to 10.69%.
  • Past Three Months – Over the last 3 months, the company has produced a ROI of -23.02%
  • Past 6 Months – Throughout the last six months, we’ve seen a change of -55.75% from the stock.
  • This Year So Far – Since the the last trading session of last year SSTI has generated a return on investment of -30.60%.
  • Full Year – Finally, over the last full year, we’ve seen a change of -39.99% from SSTI. In this period, the stock has traded at a high price of -63.08% and a low of 17.35%.

Ratios Worth Paying Attention To

Looking at various key ratios associated with a company can give prospective traders an understanding of how risky and/or rewarding a pick may be. Below are a few of the most important ratios to consider when digging into SSTI.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors are expecting that the price of the stock is headed for declines. In general, strong technology stocks tend to come with a lower short ratio. However, we also tend to see a lot of short squeezes in the space. Nonetheless, in regard to ShotSpotter, Inc., it’s short ratio amounts to 12.61.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Basically, they measure the company’s abilities to pay its debts as they mature with only current assets or quick assets. Because in tech, several companies are heavily reliant on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can look damning. However, some gems in the tech space do have good current and quick ratios. When it comes to SSTI, the quick and current ratios total up to 1.40 and 1.40 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price. In this case, the book to share value ratio is 2.68.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of the company’s stock. When it comes to SSTI, the cash to share value is 2.44.

Investors Tend To Follow The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in SSTI, here’s what we’re seeing:

Institutions own 74.80% of the company. Institutional interest has moved by 0.49% over the past three months. When it comes to insiders, those who are close to the company currently own 6.30% percent of SSTI shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

What Analysts Say About ShotSpotter, Inc.

While it’s not a good idea to blindly follow the thoughts of analysts, it is a good idea to use their thoughts when validating your own due diligence before making an investment decision in the tech sector. Below you’ll find the most recent moves that we have seen from analysts as it relates to SSTI.

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Nov-13-19 Upgrade National Securities Neutral → Buy $44 → $34
Oct-18-19 Reiterated Imperial Capital Outperform $48 → $38
Sep-27-19 Reiterated B. Riley FBR Buy $59 → $50
Aug-07-19 Downgrade William Blair Outperform → Mkt Perform
Jul-17-19 Reiterated Imperial Capital Outperform $49 → $48

Financial Results And Expectations

What have ween seen from SSTI in terms of financial results?Here’s what we’ve seen and what’s coming:

  • Analyst Expectations – As it stands, analysts expect that SSTI will create earnings per diluted share that totals up to be 0.35, with 0.03 being announced in the report for the current quarter. Although this information isn’t associated with earnings, because we are talking about Wall St. analysts, ShotSpotter, Inc. is currently graded as a 2.20 considering a scale that ranges from 1 to 5 where 1 is the worst average Wall Street analyst grade and 5 is the best rating.
  • 5-Year Sales – In the last 5 years, ShotSpotter, Inc. has created a movement in sales volume that comes to a total of 0. Earnings over the last 5 years have seen a change of 0.
  • Q/Q – In terms of quarter over quarter data, or Q/Q data as it is commonly referred to as in the world of humans, ShotSpotter, Inc. has experienced a change in earnings in the amount of 192.70%. The company has also experienced a change when it comes to sales that comes to a total of 15.70%.

Float Information

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 11.25M shares of ShotSpotter, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, SSTI has a float of 8.01M.

I also like to pay attention to the short percent. Think about it, when a large percentage of the float available for trading is sold short, the overall feeling among traders is that the company is going to take a dive. When it comes to SSTI, the short percentage of the float is currently 27.07%. Most traders believe that a high short percent of the float would be any percentage over 40%. In my research, I have calculated that a short percent of the float over 26% is usually a a play that could prove to be very risky.

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