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

Key Points

• LADENBURG THALM/SH SH upgraded SoundHound AI to a Strong-Buy, and analysts collectively give the stock a MarketBeat consensus of Moderate Buy with a $17.07 consensus price target (2 Strong Buy, 5 Buy, 2 Hold, 1 Sell).
• SoundHound’s latest quarter (reported Nov. 6) beat estimates—EPS ($0.03) vs. ($0.09) expected and revenue $42.05M, up 67.6% year-over-year—but the company remains unprofitable with a negative net margin of 211.16% and negative ROE of 93.64%.
• The stock opened at $11.02 with a $4.63 billion market cap and a 12‑month range of $6.52–$24.98; insiders sold about 787,260 shares (~$14.0M) over the last 90 days (owning 9.17% total) and institutions hold 19.28% of shares.

SoundHound AI (NASDAQ:SOUN - Get Free Report) was upgraded by equities researchers at LADENBURG THALM/SH SH to a "strong-buy" rating in a report issued on Thursday,Zacks.com reports.

Several other equities research analysts also recently weighed in on SOUN. DA Davidson reissued a "buy" rating and issued a $17.00 price objective on shares of SoundHound AI in a report on Tuesday, November 18th. Weiss Ratings reiterated a "sell (d-)" rating on shares of SoundHound AI in a research note on Tuesday, October 14th. Wedbush reissued an "outperform" rating and set a $16.00 price target on shares of SoundHound AI in a report on Thursday, September 11th. Piper Sandler upped their price objective on SoundHound AI from $12.00 to $15.00 and gave the company a "neutral" rating in a research note on Friday, November 7th. Finally, HC Wainwright lifted their target price on SoundHound AI from $18.00 to $26.00 and gave the company a "buy" rating in a research note on Thursday, October 16th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $17.07.

SoundHound AI Trading Up 1.2%

Shares of SOUN opened at $11.02 on Thursday. The firm has a market capitalization of $4.63 billion, a price-to-earnings ratio of -13.12 and a beta of 2.63. The firm's fifty day simple moving average is $14.31 and its 200-day simple moving average is $13.38. SoundHound AI has a twelve month low of $6.52 and a twelve month high of $24.98.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, topping analysts' consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The firm had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. During the same quarter in the previous year, the firm posted ($0.04) earnings per share. The company's revenue was up 67.6% compared to the same quarter last year. On average, analysts predict that SoundHound AI will post -0.38 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 69,837 shares of SoundHound AI stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total value of $1,117,392.00. Following the sale, the chief operating officer owned 1,860,790 shares of the company's stock, valued at approximately $29,772,640. The trade was a 3.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Majid Emami sold 41,167 shares of the business's stock in a transaction that occurred on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $823,340.00. Following the transaction, the vice president owned 608,186 shares in the company, valued at $12,163,720. The trade was a 6.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 787,260 shares of company stock valued at $13,973,056 over the last 90 days. Insiders own 9.17% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SOUN. Nuveen LLC purchased a new stake in shares of SoundHound AI during the 1st quarter worth $7,406,000. Russell Investments Group Ltd. increased its holdings in shares of SoundHound AI by 45.1% in the 1st quarter. Russell Investments Group Ltd. now owns 9,576 shares of the company's stock valued at $78,000 after purchasing an additional 2,978 shares in the last quarter. Northern Trust Corp lifted its stake in shares of SoundHound AI by 2.5% in the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after purchasing an additional 72,766 shares during the period. Wellington Management Group LLP boosted its holdings in SoundHound AI by 6.3% during the first quarter. Wellington Management Group LLP now owns 417,461 shares of the company's stock worth $3,390,000 after buying an additional 24,848 shares in the last quarter. Finally, AlphaQuest LLC acquired a new position in SoundHound AI during the first quarter worth about $32,000. Hedge funds and other institutional investors own 19.28% of the company's stock.

About SoundHound AI

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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