Wall Street Zen Upgrades SoundHound AI (NASDAQ:SOUN) to "Sell"

Key Points

• Wall Street Zen upgraded SoundHound AI from “strong sell” to “sell,” while broader analyst sentiment remains “Moderate Buy” with a consensus price target of $11.50.
• SoundHound shares opened at $4.43, near their 12-month low of $4.35 and well below the 12-month high of $19.09. The company remains unprofitable, though quarterly revenue rose 45% year over year to $61.9 million and exceeded estimates.
• CEO Keyvan Mohajer and SVP Majid Emami sold shares to cover tax obligations related to equity awards; insiders sold 288,758 shares worth about $1.83 million over the past quarter.

SoundHound AI (NASDAQ:SOUN - Get Free Report) was upgraded by analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other analysts also recently issued reports on the company. DA Davidson lowered their target price on SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Yorkville Ives initiated coverage on SoundHound AI in a research report on Monday, October 5th. They set an "in-line" rating and a $6.50 price target for the company. Piper Sandler decreased their price target on SoundHound AI from $7.00 to $6.00 and set a "neutral" rating for the company in a research note on Tuesday, September 22nd. Finally, Weiss Ratings raised SoundHound AI from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $11.50.

SoundHound AI Trading Down 1.6%

Shares of SOUN opened at $4.43 on Friday. SoundHound AI has a 12 month low of $4.35 and a 12 month high of $19.09. The firm has a fifty day simple moving average of $6.06 and a 200 day simple moving average of $6.89. The stock has a market capitalization of $1.97 billion, a price-to-earnings ratio of -11.66 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating 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 business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. During the same quarter last year, the firm earned ($0.19) earnings per share. The firm's revenue for the quarter was up 45.0% compared to the same quarter last year. As a group, research analysts predict that SoundHound AI will post -0.32 earnings per share for the current fiscal year.

Insider Activity

In other SoundHound AI news, CEO Keyvan Mohajer sold 137,290 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $869,045.70. Following the sale, the chief executive officer owned 3,684,947 shares in the company, valued at $23,325,714.51. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the sale, the senior vice president owned 834,253 shares in the company, valued at $5,280,821.49. This represents a 4.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 over the last quarter. 8.84% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Hilltop Holdings Inc. increased its position in shares of SoundHound AI by 3.5% during the first quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company's stock worth $353,000 after buying an additional 1,753 shares during the period. Empowered Funds LLC raised its stake in SoundHound AI by 19.6% during the first quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock worth $95,000 after buying an additional 2,277 shares during the last quarter. Hollencrest Capital Management lifted its holdings in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock valued at $25,000 after buying an additional 2,400 shares during the period. Keynote Financial Services LLC lifted its holdings in SoundHound AI by 6.9% in the first quarter. Keynote Financial Services LLC now owns 37,321 shares of the company's stock valued at $256,000 after buying an additional 2,405 shares during the period. Finally, Allworth Financial LP lifted its holdings in SoundHound AI by 12.7% in the second quarter. Allworth Financial LP now owns 22,539 shares of the company's stock valued at $146,000 after buying an additional 2,537 shares during the period. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company's offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.

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