SSTI Stock Forecast: ShotSpotter Stock Likely to Post Higher Gains

SSTI Stock Forecast: ShotSpotter Stock to Post Higher Gains
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ShotSpotter Stock Likely to Gain on Multiple Catalysts

The rising number of crimes continue to pose threats to the safety and security of citizens. Advances in technology have helped curb some of these crimes, but a lot still needs to be done. There are a few players making giant strides in the public safety space, and investors stand to make handsome returns by investing in these companies.

A case in point is ShotSpotter Inc (NASDAQ:SSTI), which is a leading provider of technology that detects gunshots. This helps authorities identify and respond to these incidents as quickly as possible.

The company’s flagship product “ShotSpotter Flex” accurately detects and locates gunshots. It then sends near real-time alerts to law enforcement.

Its software is being used by customers located in the U.S. and South Africa. And the demand has been growing. SSTI stock continues to see expansion in its market, not only nationally but internationally as well.

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Its solutions comprise of advanced cloud-based software integrated with its proprietary, Internet-enabled sensors and communication networks. When the sensors detect a potential gunfire incident, the software analyzes the data and provides the precise location of the incident.

Amid rising campus shootings and calls for gun control, the company is deploying its technology to secure campuses and other high-risk communities in the event of such incidents.

The company’s mission is to help prevent and reduce the societal costs of gun violence. It mentions the estimates by the Federal Bureau of Investigation (the FBI) in its latest annual report.

The FBI estimates that 1.2 million violent crimes occurred in the United States in 2015. Out of these violent crimes, it was estimated that guns were used in about 330,000 incidents. (Source: “Form 10-K,” ShotSpotter Inc, March 28, 2018.)

ShotSpotter is the leader in gunshot detection solutions and was recently selected to the GovTech 100 for the third consecutive year.

“We are honored to be recognized three years in a row for our work in public safety by Government Technology magazine,” said CEO Ralph Clark. (Source: “ShotSpotter Named to the 2019 GovTech 100 List,” ShotSpotter Inc, January 15, 2019.)

He further talked about the company’s mission to earn the trust of law enforcement. This would help them provide equal protection to all and ultimately reduce gun violence.

At present, the company’s technology is deployed in more than 90 cities. The company recently announced the availability of “ShotSpotter Missions,” which is a crime forecasting and patrol management software solution.

ShotSpotter Missions uses analysis driven by artificial intelligence (AI) to help plan patrol missions and tactics that result in minimizing crime.

ShotSpotter stock has been going up as the demand for its products continues to climb. The revenue has been growing over the last four quarters as the following table shows:

Quarter 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018
Revenue (Millions) 6.85 6.51 6.91 8.93 9.21
Growth -4.96% 6.14% 29.23% 3.14%

(Source: “Quarterly Reports,” ShotSpotter Inc, last accessed February 13, 2019.)

The gunshot detection company announced record third-quarter results in November 2018. Revenue increased 35% to a record of $9.2 million, up from $6.8 million in the third quarter of 2017. (Source: “Form 10-Q,” ShotSpotter Inc, November 14, 2018.)

The gross profit margin was 55%, an increase of 50% from the third quarter of 2017. The company also added 36 net new “go-live” square miles of coverage during the quarter.

The management said that the company has made excellent progress and is focused on addressing gun violence with its unique and patent-protected gunshot detection platform.

The rise in demand has helped ShotSpotter stock post record gains. SSTI stock is up by a whopping 175% over the last one year. We covered the stock in Profit Confidential in May 2018, and it has gained more than 70% since then.

The following SSTI stock chart shows this phenomenal rise.

SSTI-Stock-Graph

Chart courtesy of StockCharts.com

Analyst Take

ShotSpotter provides solutions for law enforcement to help deter gun violence and make cities, campuses, and facilities safer. Its flagship product ShotSpotter Flex is the leading gunshot detection and location system.

SSTI stock has a lot of room to grow as the market for its products continues to expand.