SoundHound AI (NASDAQ:SOUN) Price Target Lowered to $6.00 at Piper Sandler

Key Points

• Piper Sandler lowered SoundHound AI’s price target to $6.00 from $7.00 and maintained a “neutral” rating, implying roughly 2.2% downside from the stock’s $6.13 price.
• Analyst sentiment remains mixed, but the overall consensus is “Moderate Buy” with an average price target of $12.75. SoundHound recently beat quarterly earnings and revenue expectations, with revenue rising 45% year over year to $61.9 million.
• Shares have declined 0.6% and remain well below their 52-week high of $22.17; the company continues to report losses, including a negative net margin of 67.45%. Insiders sold shares primarily to cover tax obligations related to equity awards.

SoundHound AI (NASDAQ:SOUN - Get Free Report) had its target price reduced by equities researchers at Piper Sandler from $7.00 to $6.00 in a report released on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Piper Sandler's price objective would indicate a potential downside of 2.20% from the stock's current price.

Other research analysts also recently issued reports about the company. Weiss Ratings reiterated a "sell (e+)" rating on shares of SoundHound AI in a research note on Friday, September 11th. Wall Street Zen raised SoundHound AI from a "strong sell" rating to a "sell" rating in a report on Sunday, September 13th. Finally, DA Davidson lowered their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, SoundHound AI has a consensus rating of "Moderate Buy" and an average target price of $12.75.

SoundHound AI Trading Down 0.6%

Shares of SoundHound AI stock traded down $0.04 during trading on Tuesday, reaching $6.13. The company's stock had a trading volume of 5,790,206 shares, compared to its average volume of 28,069,891. The company has a 50-day moving average price of $6.67 and a two-hundred day moving average price of $7.19. SoundHound AI has a fifty-two week low of $5.65 and a fifty-two week high of $22.17. The firm has a market cap of $2.72 billion, a PE ratio of -16.09 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping analysts' consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The firm had revenue of $61.90 million during the quarter, compared to analysts' expectations of $52.38 million. During the same quarter in the prior year, the business earned ($0.19) EPS. SoundHound AI's quarterly revenue was up 45.0% compared to the same quarter last year. On average, analysts predict that SoundHound AI will post -0.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Majid Emami sold 38,730 shares of the company's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the transaction, the senior vice president owned 834,253 shares of the company's stock, valued at $5,280,821.49. This represents a 4.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the transaction, the chief operating officer owned 2,600,231 shares of the company's stock, valued at $16,459,462.23. The trade was a 2.66% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 288,758 shares of company stock valued at $1,828,598 in the last three months. 8.84% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

Several large investors have recently bought and sold shares of SOUN. California State Teachers Retirement System raised its position in SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after acquiring an additional 87,998 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock valued at $91,543,000 after acquiring an additional 273,097 shares in the last quarter. Havemeyer Place LP purchased a new stake in SoundHound AI during the 4th quarter worth about $956,000. Themes Management Co LLC raised its stake in SoundHound AI by 86.5% in the 1st quarter. Themes Management Co LLC now owns 191,444 shares of the company's stock valued at $1,315,000 after purchasing an additional 88,820 shares during the last quarter. Finally, SG Americas Securities LLC acquired a new stake in SoundHound AI during the first quarter worth approximately $1,606,000. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company's offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.

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