SSTI Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Not a good buy right now. SSTI is in a clear bearish trend (SMA200>SMA20>SMA5, negative MACD) with heavy bearish options activity (put volume dominating) and rising insider selling. Even though the stock is oversold short-term and near support, there is no Intellectia buy signal to justify an impatient entry; odds favor more chop/down until a catalyst (likely earnings or contract wins) improves sentiment.
Trend is bearish and momentum is still negative. Moving averages are stacked bearishly (SMA_200 > SMA_20 > SMA_5), confirming a sustained downtrend. MACD histogram is -0.143 (below zero), and while it is negatively contracting (selling pressure easing), it has not flipped bullish. RSI_6 at 24.57 indicates the stock is oversold (despite the label shown as neutral), which can trigger short bounces, but oversold alone is not a reliable buy signal in a downtrend. Key levels: pivot 7.416 is overhead resistance; immediate support S1 6.818 (close to the post-market 6.98) with next support S2 ~6.448. A failure to hold ~6.82 increases risk of a quick move toward ~6.45; to regain a constructive setup, price needs to reclaim the pivot (7.42) and then R1 (~8.02).
Oversold technical condition (RSI ~24.
increases probability of a short-term relief bounce if support near ~6.82 holds.
Potential event catalyst: next earnings (QDEC
on 2026-02-23 after hours; expectations are for a loss (Est EPS -0.12), so any upside surprise or improved guidance could re-rate the stock.
Some Street notes still cite upside levers such as contract conversions and potential wins (e.g., previously mentioned Chicago-related optimism), which could improve sentiment if confirmed.
Strong bearish trend remains intact (bearish MA stack, MACD below zero), so rallies are more likely to be sold until trend reverses.
Options flow is bearish today (very high put/call volume ratio), signaling near-term downside hedging/speculation.
Insider activity: insiders are selling and selling amount increased ~395% over the last month, which is a negative confidence signal.
Analyst sentiment has deteriorated with multiple target cuts and downgrades, citing delayed deployments, go-to-market challenges, and reduced FY25–FY26 confidence.
No supportive news flow in the last week to counter the negative momentum.
Latest reported quarter: 2025/Q3. Revenue declined to $25.10M (-4.38% YoY), showing contraction rather than growth. Profitability improved but remains negative: net income was -$2.044M (41.94% improvement YoY) and EPS -0.16 (45.45% improvement YoY), indicating cost control helped but the business is still loss-making. Gross margin fell to 55.26% (-5.02% YoY), a concerning trend because margin compression reduces operating leverage and makes a return to strong earnings harder without re-accelerating revenue.
Recent analyst trend is negative: multiple price target cuts (e.g., $19→$14, $20→$17, $19→$16, $20→$16) and downgrades (Craig-Hallum to Hold; Cantor Fitzgerald to Neutral with PT $10 from $16). The core message is near-term execution risk: delayed deployments, contract timing uncertainty, and lowered FY25–FY26 confidence. Wall Street pros: long-term product innovation/AI initiatives, retention, and potential upside from contract wins/conversions. Wall Street cons: recurring guidance cuts/misses, stalled core contract momentum, margin pressure, and uncertainty around timing of large deals/international deployments. Overall, the Street’s net stance has shifted from value-opportunity to “wait-and-see,” which aligns with avoiding an impatient buy right now. Politician/congress activity: no recent congress trading data available in the last 90 days.
