SoundHound AI, Inc. (NASDAQ:SOUN) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analyst consensus is “Moderate Buy” among seven firms, with three buys, one strong buy, two holds and one sell. The average 12-month price target is $13.00, above the stock’s $6.26 opening price.
• SoundHound AI exceeded quarterly expectations, reporting an adjusted loss of $0.02 per share versus the $0.13 consensus loss and revenue of $61.9 million versus $52.38 million expected. Revenue increased 45% year over year, though the company remained unprofitable.
• The stock remains highly volatile, trading between $5.65 and $22.17 over the past year, with a beta of 2.66. Insiders sold 269,365 shares worth about $2.0 million over the last quarter, primarily to cover tax obligations on vested equity awards.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) has earned an average recommendation of "Moderate Buy" from the seven research firms that are covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, two have issued a hold recommendation, three have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $13.00.

A number of research firms have issued reports on SOUN. Wall Street Zen downgraded shares of SoundHound AI from a "sell" rating to a "strong sell" rating in a research report on Saturday, September 5th. Piper Sandler lowered their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Weiss Ratings reissued a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, DA Davidson cut their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a report on Thursday, August 6th.

SoundHound AI Trading Down 0.3%

SOUN opened at $6.26 on Friday. SoundHound AI has a 1-year low of $5.65 and a 1-year high of $22.17. The stock has a market capitalization of $2.78 billion, a PE ratio of -16.47 and a beta of 2.66. The firm has a 50-day moving average price of $6.74 and a two-hundred day moving average price of $7.30.

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

Insider Activity at SoundHound AI

In related news, SVP Majid Emami sold 28,843 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the sale, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. This represents a 5.75% decrease in their position. 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, CTO Timothy Stonehocker sold 18,802 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $140,262.92. Following the sale, 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 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 quarter, insiders sold 269,365 shares of company stock valued at $2,009,047. 8.84% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

A number of large investors have recently bought and sold shares of SOUN. EP Wealth Advisors LLC lifted its stake in SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock valued at $151,000 after buying an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. increased its position in shares of SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock worth $513,000 after acquiring an additional 830 shares in the last quarter. Parallel Advisors LLC raised its holdings in shares of 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 acquiring an additional 960 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in shares of 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 acquiring an additional 1,060 shares during the period. Finally, Integrated Wealth Concepts LLC lifted its position in SoundHound AI by 8.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock valued at $119,000 after acquiring an additional 1,201 shares in the last quarter. 19.28% of the stock is owned by institutional investors.

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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