Northland Securities Upgrades SoundHound AI (NASDAQ:SOUN) to Outperform

Key Points

• Northland Securities has upgraded SoundHound AI from a "market perform" rating to an "outperform" rating, with a target price of $14.50, indicating a potential upside of 11.39% from its current price.
• SoundHound AI reports a significant 216.3% year-over-year revenue increase at $42.68 million for the quarter but missed earnings estimates by $0.13, reporting a loss of ($0.19) EPS.
• Insiders have sold nearly 1 million shares of SoundHound AI in the last ninety days, leading to a decline in their overall ownership percentage to 9.17%.

Northland Securities upgraded shares of SoundHound AI (NASDAQ:SOUN - Free Report) from a market perform rating to an outperform rating in a research report released on Friday morning, MarketBeat reports. Northland Securities currently has $14.50 price objective on the stock.

SOUN has been the topic of several other reports. HC Wainwright lowered their target price on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a report on Monday, May 12th. Wedbush lowered their target price on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating on the stock in a report on Friday, May 9th. DA Davidson lowered their target price on SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Finally, Piper Sandler restated a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a report on Monday, July 14th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, four have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $11.44.

SoundHound AI Stock Performance

Shares of SoundHound AI stock traded up $2.83 on Friday, hitting $13.55. The company's stock had a trading volume of 206,161,228 shares, compared to its average volume of 36,324,236. SoundHound AI has a 1 year low of $4.32 and a 1 year high of $24.98. The firm has a fifty day moving average price of $10.76 and a 200-day moving average price of $10.54. The company has a market capitalization of $5.44 billion, a price-to-earnings ratio of -21.51 and a beta of 2.57.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share 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 business had revenue of $42.68 million during the quarter, compared to analysts' expectations of $32.88 million. During the same quarter in the prior year, the firm earned ($0.11) EPS. SoundHound AI's revenue for the quarter was up 216.3% on a year-over-year basis. As a group, analysts forecast that SoundHound AI will post -0.38 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other news, Director Diana Sroka sold 2,800 shares of the stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $9.94, for a total transaction of $27,832.00. Following the completion of the sale, the director owned 153,949 shares in the company, valued at approximately $1,530,253.06. This represents a 1.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider James Ming Hom sold 79,530 shares of the firm's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $744,400.80. Following the completion of the sale, the insider owned 637,560 shares of the company's stock, valued at approximately $5,967,561.60. The trade was a 11.09% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 961,289 shares of company stock valued at $9,247,847. Corporate insiders own 9.17% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Rockefeller Capital Management L.P. grew its stake in SoundHound AI by 1,595.0% in the 2nd quarter. Rockefeller Capital Management L.P. now owns 674,541 shares of the company's stock worth $7,238,000 after acquiring an additional 634,744 shares during the period. Cetera Investment Advisers boosted its holdings in shares of SoundHound AI by 18.8% in the 2nd quarter. Cetera Investment Advisers now owns 160,937 shares of the company's stock valued at $1,727,000 after purchasing an additional 25,423 shares during the last quarter. Creative Planning lifted its holdings in shares of SoundHound AI by 11.4% during the 2nd quarter. Creative Planning now owns 90,218 shares of the company's stock valued at $968,000 after acquiring an additional 9,237 shares in the last quarter. SG Americas Securities LLC lifted its holdings in shares of SoundHound AI by 221.6% during the 2nd quarter. SG Americas Securities LLC now owns 249,143 shares of the company's stock valued at $2,673,000 after acquiring an additional 171,672 shares in the last quarter. Finally, Meridian Wealth Management LLC lifted its holdings in shares of SoundHound AI by 4.3% during the 2nd quarter. Meridian Wealth Management LLC now owns 54,110 shares of the company's stock valued at $581,000 after acquiring an additional 2,210 shares in the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

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.