SoundHound AI, Inc. (NASDAQ:SOUN) Stock Has Consensus Price Target of $11.50

Key Points

• Analyst sentiment is moderately positive: Eight brokerages give SoundHound AI a consensus “Moderate Buy” rating, with an average 12-month price target of $11.50.
• Recent results exceeded expectations: The company reported quarterly revenue of $61.9 million, up 45% year over year, and adjusted its loss to $0.02 per share versus the $0.13 expected loss. However, it remains unprofitable, with a negative net margin of 67.45%.
• The stock remains highly volatile: SOUN opened at $4.22, compared with a 52-week range of $4.04 to $17.85. Company insiders sold approximately $1.83 million of stock over the past 90 days, primarily to cover tax obligations tied to vested equity awards.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) have earned an average rating of "Moderate Buy" from the eight brokerages that are currently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, three have given a hold recommendation, three have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $11.50.

SOUN has been the subject of several research analyst reports. Piper Sandler dropped their target price on shares of SoundHound AI from $7.00 to $6.00 and set a "neutral" rating for the company in a research report on Tuesday, September 22nd. Weiss Ratings upgraded SoundHound AI from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Thursday, October 15th. Yorkville Ives began coverage on SoundHound AI in a report on Monday, October 5th. They set an "in-line" rating and a $6.50 target price on the stock. DA Davidson decreased their target price on SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Finally, Wall Street Zen upgraded SoundHound AI from a "strong sell" rating to a "sell" rating in a report on Saturday, October 24th.

SoundHound AI Stock Performance

Shares of SOUN opened at $4.22 on Friday. The company has a market capitalization of $1.87 billion, a P/E ratio of -11.10 and a beta of 2.73. SoundHound AI has a one year low of $4.04 and a one year high of $17.85. The stock has a 50-day moving average price of $5.79 and a 200 day moving average price of $7.20.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts' expectations of $52.38 million. During the same period in the prior year, the company posted ($0.19) earnings per share. The firm's quarterly revenue was up 45.0% on a year-over-year basis. As a group, equities research analysts forecast that SoundHound AI will post -0.39 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 137,290 shares of SoundHound AI 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 completion of the transaction, the chief executive officer directly owned 3,684,947 shares in the company, valued at $23,325,714.51. The trade was a 3.59% 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, 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 transaction, the senior vice president directly owned 834,253 shares of the company's stock, valued at $5,280,821.49. This trade represents a 4.44% decrease in their ownership of the stock. 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 worth $1,828,598 in the last ninety days. 8.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Several large investors have recently made changes to their positions in SOUN. Hollencrest Capital Management raised its position in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock worth $25,000 after acquiring an additional 2,400 shares in the last quarter. Financial Management Professionals Inc. bought a new position in shares of SoundHound AI during the 3rd quarter valued at about $30,000. 180 Wealth Advisors LLC bought a new position in shares of SoundHound AI during the 1st quarter valued at about $69,000. Krilogy Financial LLC bought a new stake in shares of SoundHound AI in the 3rd quarter worth approximately $62,000. Finally, Verus Capital Partners LLC acquired a new position in SoundHound AI in the first quarter worth approximately $71,000. Institutional investors and hedge funds own 19.28% of the company's stock.

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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