HC Wainwright Has Lowered Expectations for SoundHound AI (NASDAQ:SOUN) Stock Price

Key Points

• HC Wainwright cut its price target on SoundHound AI to $20 from $26 while keeping a "buy" rating, a target the firm says implies roughly a 132.64% upside from the stock's prior close.
• Analyst consensus is a “Moderate Buy” with a $14.93 average target; the current breakdown is 1 Strong Buy, 5 Buy, 3 Hold and 1 Sell, showing mixed but generally favorable sentiment.
• SoundHound reported revenue of $55.06M (above expectations) and EPS of ($0.02) in the latest quarter with revenue up 59.4% year‑over‑year, but the company remains unprofitable; insiders have sold about 460,922 shares (~$5.2M) in the past 90 days while institutions like Goldman Sachs materially increased positions.

SoundHound AI (NASDAQ:SOUN - Get Free Report) had its price target dropped by investment analysts at HC Wainwright from $26.00 to $20.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. HC Wainwright's price objective suggests a potential upside of 132.64% from the company's previous close.

A number of other equities research analysts also recently commented on SOUN. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a report on Thursday, December 18th. Weiss Ratings reiterated a "sell (d-)" rating on shares of SoundHound AI in a report on Friday, January 9th. Piper Sandler reissued a "neutral" rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Finally, Cantor Fitzgerald raised shares of SoundHound AI from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $13.00 to $15.00 in a report on Friday, December 12th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, SoundHound AI presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Price Performance

SoundHound AI stock opened at $8.60 on Monday. SoundHound AI has a 1-year low of $6.52 and a 1-year high of $22.17. The business has a fifty day moving average price of $9.58 and a 200-day moving average price of $12.88. The stock has a market capitalization of $3.61 billion, a price-to-earnings ratio of -171.91 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting analysts' consensus estimates of ($0.02). The company had revenue of $55.06 million during the quarter, compared to analysts' expectations of $53.88 million. SoundHound AI had a negative return on equity of 3.82% and a negative net margin of 8.71%.The firm's revenue was up 59.4% compared to the same quarter last year. During the same period last year, the business posted ($0.05) earnings per share. On average, equities research analysts anticipate that SoundHound AI will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In related news, insider James Ming Hom sold 42,600 shares of the company's stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the insider owned 803,383 shares of the company's stock, valued at approximately $9,062,160.24. This represents a 5.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Keyvan Mohajer sold 144,326 shares of SoundHound AI stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the transaction, the chief executive officer directly owned 2,198,287 shares in the company, valued at $24,796,677.36. This trade represents a 6.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 460,922 shares of company stock valued at $5,199,073 in the last 90 days. 9.17% of the stock is owned by insiders.

Institutional Trading of SoundHound AI

Institutional investors have recently made changes to their positions in the company. Royal Bank of Canada increased its stake in SoundHound AI by 71.3% during the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company's stock worth $1,301,000 after buying an additional 66,714 shares during the period. Integrated Wealth Concepts LLC grew its stake in shares of SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock worth $119,000 after acquiring an additional 1,201 shares in the last quarter. NewEdge Advisors LLC increased its position in shares of SoundHound AI by 12.9% during the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company's stock worth $333,000 after acquiring an additional 4,692 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after acquiring an additional 1,085,473 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of SoundHound AI by 10.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company's stock valued at $5,620,000 after acquiring an additional 63,398 shares in the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

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