SoundHound AI (NASDAQ:SOUN) Upgraded by Wall Street Zen to Sell Rating

Key Points

• Wall Street Zen upgraded SoundHound AI from “strong sell” to “sell,” while broader analyst coverage remains more positive with an overall “Moderate Buy” rating and an average price target of $13.
• SoundHound AI reported a quarterly loss of $0.02 per share, beating estimates, while revenue rose 45% year over year to $61.9 million. Despite the growth, the company posted a negative net margin of 67.45%.
• The stock opened at $6.26, near its 52-week low of $5.65 and well below its $22.17 high. Insiders have sold 269,365 shares worth about $2 million over the past 90 days, primarily to cover tax obligations from equity awards.

SoundHound AI (NASDAQ:SOUN - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "strong sell" rating to a "sell" rating in a report released on Sunday, Wall Street Zen reports.

SOUN has been the topic of a number of other research reports. Piper Sandler decreased their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Thursday, August 6th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. Finally, DA Davidson reduced their price target on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $13.00.

SoundHound AI Stock Down 0.3%

Shares of SoundHound AI stock opened at $6.26 on Friday. SoundHound AI has a 52 week low of $5.65 and a 52 week high of $22.17. The business's fifty day simple moving average is $6.74 and its 200-day simple moving average is $7.30. The firm has a market cap of $2.78 billion, a PE ratio of -16.47 and a beta of 2.66.

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

Insider Buying and Selling at SoundHound AI

In related news, CTO Timothy Stonehocker sold 18,802 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the transaction, the chief technology officer directly owned 502,290 shares in the company, valued at $3,747,083.40. The trade was a 3.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the sale, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. The trade was a 3.75% 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. Over the last 90 days, insiders sold 269,365 shares of company stock worth $2,009,047. 8.84% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

Large investors have recently made changes to their positions in the stock. Danske Bank A S acquired a new position in shares of SoundHound AI during the 3rd quarter valued at about $26,000. Northwestern Mutual Wealth Management Co. increased its position in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after purchasing an additional 1,060 shares during the last quarter. SHP Wealth Management acquired a new position in SoundHound AI during the fourth quarter worth approximately $27,000. Parallel Advisors LLC raised its stake in SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after purchasing an additional 960 shares during the period. Finally, Hollencrest Capital Management raised its stake in SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock worth $25,000 after purchasing an additional 2,400 shares during the period. Institutional investors and hedge funds own 19.28% of the company's stock.

About SoundHound AI

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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