LADENBURG THALM/SH SH Upgrades SoundHound AI (NASDAQ:SOUN) to "Buy"

Key Points

• LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating, increasing the price target from $9.00 to $16.00, indicating an 18.08% potential upside from the previous close.
• SoundHound AI's recent earnings report revealed a significant 216.3% year-over-year revenue increase to $42.68 million, despite a loss of ($0.19) earnings per share, which was below analysts' expectations.
• Analyst ratings are mixed, with one "sell," three "hold," five "buy," and one "strong buy," reflecting a moderate buy consensus and an average price target of $13.36.

SoundHound AI (NASDAQ:SOUN - Get Free Report) was upgraded by investment analysts at LADENBURG THALM/SH SH from a "neutral" rating to a "buy" rating in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a $16.00 price target on the stock, up from their previous price target of $9.00. LADENBURG THALM/SH SH's price objective suggests a potential upside of 18.08% from the company's previous close.

Other equities research analysts also recently issued reports about the company. DA Davidson reduced their target price on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a report on Monday, April 14th. Northland Capmk raised SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday. HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research note on Monday, May 12th. Wall Street Zen downgraded SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday. Finally, Piper Sandler reissued a "neutral" rating and issued a $12.00 price objective on shares of SoundHound AI in a research note on Monday, July 14th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $13.36.

SoundHound AI Stock Up 26.4%

Shares of SOUN stock opened at $13.55 on Monday. The stock has a 50-day simple moving average of $10.76 and a 200 day simple moving average of $10.45. SoundHound AI has a fifty-two week low of $4.32 and a fifty-two week high of $24.98. The stock has a market capitalization of $5.44 billion, a P/E ratio of -21.51 and a beta of 2.57.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.19) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 77.38%. The company had revenue of $42.68 million for the quarter, compared to analysts' expectations of $32.88 million. During the same period in the prior year, the company earned ($0.11) earnings per share. The company's revenue for the quarter was up 216.3% on a year-over-year basis. On average, sell-side analysts anticipate that SoundHound AI will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other news, CFO Nitesh Sharan sold 111,111 shares of the stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the transaction, the chief financial officer owned 1,442,900 shares of the company's stock, valued at approximately $13,505,544. This represents a 7.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Michael Zagorsek sold 117,180 shares of the stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $1,096,804.80. Following the transaction, the chief operating officer directly owned 1,346,455 shares in the company, valued at approximately $12,602,818.80. This represents a 8.01% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 957,474 shares of company stock worth $9,209,697. 9.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Janney Montgomery Scott LLC grew its holdings in SoundHound AI by 4.0% in the 2nd quarter. Janney Montgomery Scott LLC now owns 23,073 shares of the company's stock valued at $248,000 after buying an additional 880 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in SoundHound AI by 16.4% in the 4th quarter. Russell Investments Group Ltd. now owns 6,598 shares of the company's stock valued at $131,000 after buying an additional 929 shares during the last quarter. Apexium Financial LP grew its holdings in SoundHound AI by 2.8% in the 2nd quarter. Apexium Financial LP now owns 36,698 shares of the company's stock valued at $394,000 after buying an additional 1,000 shares during the last quarter. Belpointe Asset Management LLC grew its holdings in SoundHound AI by 9.6% in the 2nd quarter. Belpointe Asset Management LLC now owns 11,430 shares of the company's stock valued at $123,000 after buying an additional 1,000 shares during the last quarter. Finally, Huntington National Bank grew its holdings in SoundHound AI by 48.8% in the 2nd quarter. Huntington National Bank now owns 3,050 shares of the company's stock valued at $33,000 after buying an additional 1,000 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

About SoundHound AI

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.