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

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.

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

Several brokerages have recently weighed in on SOUN. Wedbush lifted their price target on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a research report on Friday, August 8th. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target for the company in a research report on Friday, August 8th. HC Wainwright reduced their price target on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and lifted their price target for the company from $9.00 to $16.00 in a research report on Monday, August 11th.

SoundHound AI Price Performance

Shares of SOUN traded down $0.68 during mid-day trading on Tuesday, hitting $12.74. The stock had a trading volume of 65,078,594 shares, compared to its average volume of 42,370,469. The firm has a market cap of $5.19 billion, a P/E ratio of -20.22 and a beta of 2.58. The business has a fifty day moving average price of $12.14 and a 200-day moving average price of $10.39. SoundHound AI has a 52 week low of $4.32 and a 52 week high of $24.98.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results 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). The firm had revenue of $42.68 million during the quarter, compared to the consensus estimate of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The business's quarterly revenue was up 216.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. As a group, research analysts expect that SoundHound AI will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, VP Majid Emami sold 132,352 shares of the business's stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $10.04, for a total transaction of $1,328,814.08. Following the completion of the transaction, the vice president directly owned 537,482 shares in the company, valued at $5,396,319.28. The trade was a 19.76% 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. Also, CEO Keyvan Mohajer sold 254,376 shares of SoundHound AI stock in a transaction dated 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 sale, the chief executive officer directly owned 1,749,790 shares of the company's stock, valued at approximately $16,378,034.40. This trade represents a 12.69% decrease in their position. The disclosure for this sale can be found here. Insiders sold 913,317 shares of company stock valued at $8,679,813 in the last 90 days. Corporate insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised 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 valued at $284,687,000 after purchasing an additional 3,028,281 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in SoundHound AI by 84.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock valued at $40,390,000 after purchasing an additional 2,274,105 shares during the last quarter. HRT Financial LP bought a new position in SoundHound AI during the 2nd quarter valued at approximately $11,914,000. Goldman Sachs Group Inc. raised its position in SoundHound AI by 69.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after purchasing an additional 1,085,473 shares during the last quarter. Finally, Nuveen LLC bought a new position in SoundHound AI during the 1st quarter valued at approximately $7,406,000. 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.