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

Key Points

• Analysts give SoundHound AI a consensus rating of "Moderate Buy" (10 firms) with an average 1-year price target of about $14.93, while the stock trades near $6.97, implying significant analyst upside.
• In the latest quarter SoundHound reported EPS of ($0.02) meeting estimates and revenue of $55.06M (up 59.4% YoY), but the company remains unprofitable with negative margins and analysts project a full-year EPS around -0.38.
• Insiders have been net sellers recently: the CEO and CFO each sold shares on March 20 and insiders sold roughly 307,973 shares (~$2.09M) over the past three months, representing about 9.17% insider ownership.

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

Several equities analysts have weighed in on SOUN shares. DA Davidson set a $14.00 target price on SoundHound AI in a research report on Thursday, January 8th. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. Piper Sandler reissued a "neutral" rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, HC Wainwright cut their target price 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.

SoundHound AI Price Performance

NASDAQ SOUN opened at $6.97 on Wednesday. The company has a market cap of $2.95 billion, a P/E ratio of -139.37 and a beta of 2.71. The stock has a 50-day moving average of $7.45 and a two-hundred day moving average of $11.25. SoundHound AI has a 1-year low of $5.83 and a 1-year high of $22.17.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting the consensus estimate of ($0.02). The company had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.SoundHound AI's revenue was up 59.4% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.05) EPS. On average, analysts anticipate that SoundHound AI will post -0.38 EPS for the current fiscal year.

Insider Activity

In related news, CEO Keyvan Mohajer sold 124,510 shares of the company'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 transaction of $845,422.90. Following the sale, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. This represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of the company's 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 sale, the chief financial officer owned 1,661,121 shares in the company, valued at $11,279,011.59. The trade was a 2.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 307,973 shares of company stock valued at $2,091,110. 9.17% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

A number of large investors have recently made changes to their positions in the company. Sound Income Strategies LLC increased its stake in shares of SoundHound AI by 37.3% during the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after buying an additional 575 shares during the period. Investors Research Corp boosted its holdings in SoundHound AI by 62.4% in the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock valued at $29,000 after purchasing an additional 700 shares in the last quarter. EP Wealth Advisors LLC boosted its holdings in SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock valued at $151,000 after purchasing an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. boosted its holdings in SoundHound AI by 2.7% in the third 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 in the last quarter. Finally, Insigneo Advisory Services LLC boosted its holdings in SoundHound AI by 7.4% in the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company's stock valued at $200,000 after purchasing an additional 858 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

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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