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

Key Points

• Analyst consensus is “Moderate Buy”: Nine brokerages give SoundHound AI an average 12-month price target of $13.60, though ratings include one sell, three holds, four buys and one strong buy. Recent target cuts included Piper Sandler to $7 and DA Davidson to $10.
• SoundHound exceeded quarterly expectations: The company reported an adjusted loss of $0.02 per share versus the expected $0.13 loss, while revenue reached $61.9 million, up 45% year over year and above the $52.38 million consensus estimate.
• Shares remain volatile and unprofitable: SOUN opened at $7.04, compared with a 52-week range of $5.65 to $22.17; it has a $3.13 billion market capitalization, negative net margin, and analysts expect a full-year loss of $0.33 per share.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) has received an average recommendation of "Moderate Buy" from the nine brokerages that are covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, four have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $13.60.

Several analysts recently issued reports on the stock. Wall Street Zen upgraded shares of SoundHound AI from a "strong sell" rating to a "sell" rating in a research report on Saturday. Piper Sandler dropped their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, DA Davidson decreased their target price on SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a report on Thursday, August 6th.

Insiders Place Their Bets

In other news, CEO Keyvan Mohajer sold 126,540 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $943,988.40. Following the transaction, the chief executive officer owned 1,947,237 shares of the company's stock, valued at $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the insider directly owned 743,521 shares in the company, valued at approximately $5,546,666.66. The trade was a 3.73% decrease in their ownership of the stock. 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. Over the last 90 days, insiders have sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. EP Wealth Advisors LLC boosted its position in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after purchasing an additional 706 shares during the period. Newbridge Financial Services Group Inc. raised its position in shares of SoundHound AI by 2.7% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock valued at $513,000 after purchasing an additional 830 shares during the period. Parallel Advisors LLC lifted its stake in shares of SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock valued at $52,000 after buying an additional 960 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after buying an additional 1,060 shares in the last quarter. Finally, Integrated Wealth Concepts LLC boosted its holdings in SoundHound AI by 8.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock worth $119,000 after buying an additional 1,201 shares during the period. Institutional investors own 19.28% of the company's stock.

SoundHound AI Stock Performance

SoundHound AI stock opened at $7.04 on Tuesday. SoundHound AI has a one year low of $5.65 and a one year high of $22.17. The stock has a fifty day moving average of $6.70 and a 200 day moving average of $7.46. The stock has a market cap of $3.13 billion, a PE ratio of -18.53 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The business had revenue of $61.90 million for the quarter, compared to analysts' expectations of $52.38 million. During the same period last year, the firm posted ($0.19) earnings per share. The business's revenue for the quarter was up 45.0% on a year-over-year basis. As a group, sell-side analysts predict that SoundHound AI will post -0.33 EPS for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source