SoundHound AI, Inc. (NASDAQ:SOUN) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• SoundHound AI has a consensus brokerage rating of “Moderate Buy” from 10 analysts, with an average 1-year price target of about $14.93.
• Recent analyst actions were mixed but generally positive, including DA Davidson reiterating a buy rating and Ladenburg Thalm/SH upgrading the stock to strong buy, while Weiss Ratings kept a sell rating.
• Insiders have been selling shares recently, including SVP Majid Emami and COO Michael Zagorsek, even as institutional investors like Vanguard, Morgan Stanley, and UBS increased or maintained sizable positions.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the ten brokerages that are currently covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, five have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $14.9286.

A number of brokerages recently commented on SOUN. DA Davidson reiterated a "buy" rating and issued a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. HC Wainwright decreased their price target on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th.

Insider Activity at SoundHound AI

In other news, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the senior vice president owned 472,983 shares of the company's stock, valued at approximately $3,528,453.18. This trade represents a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $484,855.24. Following the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. The trade was a 3.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in SOUN. Morgan Stanley grew its position in shares of SoundHound AI by 48.1% during the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock worth $89,606,000 after purchasing an additional 2,917,280 shares in the last quarter. UBS Group AG grew its position in shares of SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company's stock worth $61,059,000 after purchasing an additional 2,676,707 shares in the last quarter. Voloridge Investment Management LLC grew its position in shares of SoundHound AI by 2,259.7% during the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company's stock worth $21,929,000 after purchasing an additional 2,106,298 shares in the last quarter. Vanguard Group Inc. grew its position in shares of SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after purchasing an additional 1,909,868 shares in the last quarter. Finally, Jump Financial LLC acquired a new position in shares of SoundHound AI during the 3rd quarter worth approximately $21,679,000. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Stock Performance

Shares of NASDAQ:SOUN opened at $6.41 on Monday. SoundHound AI has a 52-week low of $5.83 and a 52-week high of $22.17. The company has a market capitalization of $2.77 billion, a P/E ratio of -13.64 and a beta of 2.56. The company has a 50-day simple moving average of $7.90 and a 200 day simple moving average of $8.54.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The firm had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. During the same quarter last year, the business posted ($0.06) earnings per share. The company's revenue for the quarter was up 51.7% on a year-over-year basis. As a group, equities analysts forecast that SoundHound AI will post -0.45 earnings per share for the current year.

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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