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

Key Points

• SoundHound AI, Inc. has received a consensus rating of "Moderate Buy" from analysts, with an average price target of $14.36.
• The company reported a quarterly loss of ($0.19) EPS, missing expectations, but saw a 216.3% increase in revenue year-over-year, totaling $42.68 million.
• Insiders have sold a significant number of shares recently, with the CTO and CEO collectively offloading over $2.2 million in stock transactions.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) has received an average rating of "Moderate Buy" from the ten brokerages that are currently covering the firm, MarketBeat reports. Four equities research analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokers that have issued ratings on the stock in the last year is $14.3571.

A number of brokerages have recently weighed in on SOUN. Oppenheimer began coverage on SoundHound AI in a research report on Thursday, September 11th. They set a "market perform" rating on the stock. Piper Sandler reiterated a "neutral" rating and set a $12.00 price target on shares of SoundHound AI in a research report on Monday, July 14th. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and increased their price target for the stock from $9.00 to $16.00 in a research report on Monday, August 11th. Finally, Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target on the stock in a research report on Friday, August 8th.

SoundHound AI Stock Down 2.5%

Shares of NASDAQ SOUN opened at $15.94 on Friday. The stock's 50 day moving average price is $13.54 and its two-hundred day moving average price is $11.04. SoundHound AI has a 52-week low of $4.45 and a 52-week high of $24.98. The stock has a market capitalization of $6.50 billion, a P/E ratio of -25.30 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share (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 73.13%. The firm had revenue of $42.68 million for the quarter, compared to analyst estimates of $32.88 million. During the same quarter in the previous year, the company earned ($0.11) EPS. The company's quarterly revenue was up 216.3% compared to the same quarter last year. SoundHound AI has set its FY 2025 guidance at EPS. On average, analysts anticipate that SoundHound AI will post -0.38 EPS for the current year.

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 2,247 shares of the firm's stock in a transaction that occurred on Wednesday, September 24th. The stock was sold at an average price of $17.90, for a total value of $40,221.30. Following the sale, the chief technology officer directly owned 677,049 shares in the company, valued at $12,119,177.10. This trade represents a 0.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Keyvan Mohajer sold 138,523 shares of the firm's stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $2,216,368.00. Following the completion of the sale, the chief executive officer owned 2,461,267 shares in the company, valued at approximately $39,380,272. This represents a 5.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 495,196 shares of company stock worth $8,068,135 over the last quarter. Insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in SoundHound AI by 9.5% in the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after acquiring an additional 3,028,281 shares during the period. Geode Capital Management LLC boosted its stake in SoundHound AI by 8.3% during the 2nd quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company's stock valued at $94,759,000 after purchasing an additional 679,436 shares in the last quarter. State Street Corp boosted its stake in SoundHound AI by 9.1% during the 2nd quarter. State Street Corp now owns 8,476,348 shares of the company's stock valued at $90,951,000 after purchasing an additional 708,369 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in SoundHound AI by 1.0% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,024,632 shares of the company's stock valued at $53,906,000 after purchasing an additional 50,904 shares in the last quarter. Finally, Northern Trust Corp boosted its stake in SoundHound AI by 2.5% during the 1st 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 in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.

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