SoundHound AI, Inc. (NASDAQ:SOUN) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• SoundHound AI has an average analyst rating of “Moderate Buy”, based on coverage from 10 analysts, with an average 12-month price target of about $14.93.
• The stock was down 8.4% and opened at $8.08, well below the consensus target; the company also remains unprofitable, with its latest quarterly EPS of -$0.06 slightly missing estimates despite revenue growth.
• Recent activity showed insider selling by the CFO and an SVP, while institutional investors such as Vanguard, Morgan Stanley, and UBS increased their holdings, indicating mixed signals from market participants.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) has received an average recommendation of "Moderate Buy" from the ten analysts that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, five have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among analysts that have covered the stock in the last year is $14.9286.

Several analysts recently commented on SOUN shares. Piper Sandler reaffirmed a "neutral" rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. DA Davidson reiterated a "buy" rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, HC Wainwright lowered their price target on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd.

SoundHound AI Stock Down 8.4%

SoundHound AI stock opened at $8.08 on Thursday. The firm has a market cap of $3.50 billion, a price-to-earnings ratio of -17.19 and a beta of 2.56. SoundHound AI has a 52 week low of $5.83 and a 52 week high of $22.17. The business's 50-day moving average price is $7.79 and its 200 day moving average price is $9.13.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm's revenue was up 51.7% on a year-over-year basis. During the same period last year, the business earned ($0.06) earnings per share. Equities analysts expect that SoundHound AI will post -0.43 EPS for the current year.

Insider Activity at SoundHound AI

In other SoundHound AI news, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the transaction, the chief financial officer owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Majid Emami sold 31,019 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the transaction, the senior vice president owned 501,826 shares in the company, valued at approximately $3,407,398.54. This trade represents a 5.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 307,973 shares of company stock valued at $2,091,110 in the last ninety days. 8.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in shares of SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock valued at $452,313,000 after acquiring an additional 1,909,868 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock valued at $91,543,000 after acquiring an additional 273,097 shares in the last quarter. Morgan Stanley lifted its position in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock valued at $89,606,000 after acquiring an additional 2,917,280 shares in the last quarter. State Street Corp lifted its position in shares of SoundHound AI by 0.9% in the fourth quarter. State Street Corp now owns 8,691,235 shares of the company's stock valued at $86,652,000 after acquiring an additional 80,908 shares in the last quarter. Finally, UBS Group AG lifted its position in shares of SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after acquiring an additional 2,676,707 shares in the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.

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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