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

Key Points

• SoundHound AI, Inc. has received a consensus rating of "Moderate Buy" from analysts, with an average 12-month target price of $13.36.
• Insiders, including Director Diana Sroka and CTO Timothy Stonehocker, sold significant amounts of shares recently, reducing their holdings slightly.
• SoundHound AI reported a revenue of $42.68 million for the most recent quarter, significantly higher than analysts' expectations, but missed earnings per share estimates.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the nine ratings firms that are covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a hold recommendation, five have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $13.3571.

Several brokerages have weighed in on SOUN. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective for the company in a report on Friday, August 8th. HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. Wall Street Zen cut SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 price objective on shares of SoundHound AI in a report on Monday, July 14th. Finally, Wedbush lifted their price objective on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a report on Friday, August 8th.

SoundHound AI Stock Performance

NASDAQ:SOUN traded up $0.97 during mid-day trading on Tuesday, hitting $14.26. 95,393,466 shares of the stock were exchanged, compared to its average volume of 65,710,336. The stock has a market capitalization of $5.81 billion, a price-to-earnings ratio of -22.63 and a beta of 2.58. The firm's 50-day simple moving average is $12.36 and its 200 day simple moving average is $10.44. SoundHound AI has a fifty-two week low of $4.32 and a fifty-two week high of $24.98.

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 for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The company had revenue of $42.68 million during the quarter, compared to analyst estimates of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. SoundHound AI's revenue was up 216.3% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. On average, analysts predict that SoundHound AI will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Keyvan Mohajer sold 254,376 shares of SoundHound AI stock in a transaction on Friday, June 20th. The stock was sold at an average price of $9.36, for a total value of $2,380,959.36. Following the transaction, the chief executive officer owned 1,749,790 shares in the company, valued at approximately $16,378,034.40. This trade represents a 12.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Nitesh Sharan sold 111,111 shares of SoundHound AI stock in a transaction on Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $1,039,998.96. Following the completion of the transaction, the chief financial officer owned 1,442,900 shares in the company, valued at approximately $13,505,544. The trade was a 7.15% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 913,317 shares of company stock worth $8,679,813. 9.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. grew its position in SoundHound AI by 9.5% during the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock worth $284,687,000 after acquiring an additional 3,028,281 shares during the last quarter. Geode Capital Management LLC grew its position 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 worth $94,759,000 after acquiring an additional 679,436 shares during the last quarter. State Street Corp grew its position in SoundHound AI by 9.1% during the 2nd quarter. State Street Corp now owns 8,476,348 shares of the company's stock worth $90,951,000 after acquiring an additional 708,369 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position 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 worth $53,906,000 after acquiring an additional 50,904 shares during the last quarter. Finally, Northern Trust Corp grew its position in SoundHound AI by 2.5% during the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock worth $24,190,000 after acquiring an additional 72,766 shares during the last quarter. Institutional investors own 19.28% of the company's stock.

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.