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

Key Points

• SoundHound AI, Inc. (NASDAQ:SOUN) has received a consensus "Moderate Buy" recommendation from 11 analysts, with an average 12-month target price set at $15.50.
• The company's stock experienced a 4.4% decline recently, with a current trading price of around $18.23, down from a 12-month high of $24.98.
• Despite missing quarterly earnings estimates, SoundHound AI reported a significant 216.3% increase in revenue year-over-year, totaling $42.68 million in its last earnings report.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the eleven analysts that are presently covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, four have given a hold recommendation, five have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $15.50.

SOUN has been the topic of several analyst reports. LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and increased their price target for the stock from $9.00 to $16.00 in a research note on Monday, August 11th. Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Northland Capmk upgraded shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 8th. Wedbush reiterated an "outperform" rating and issued a $16.00 target price on shares of SoundHound AI in a research note on Thursday, September 11th. Finally, HC Wainwright raised their target price on shares of SoundHound AI from $18.00 to $26.00 and gave the company a "buy" rating in a research note on Thursday, October 16th.

SoundHound AI Stock Down 4.4%

Shares of SOUN opened at $18.23 on Wednesday. The company's fifty day moving average is $15.80 and its 200-day moving average is $12.15. SoundHound AI has a 12 month low of $4.86 and a 12 month high of $24.98. The firm has a market cap of $7.43 billion, a price-to-earnings ratio of -28.94 and a beta of 2.60.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The business had revenue of $42.68 million for the quarter, compared to analyst estimates of $32.88 million. During the same quarter last year, the company earned ($0.11) EPS. The business's revenue for the quarter was up 216.3% compared to the same quarter last year. SoundHound AI has set its FY 2025 guidance at EPS. As a group, research analysts predict that SoundHound AI will post -0.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Keyvan Mohajer sold 138,523 shares of the firm's stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $2,216,368.00. Following the transaction, the chief executive officer directly owned 2,461,267 shares in the company, valued at approximately $39,380,272. This trade represents a 5.33% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, COO Michael Zagorsek sold 69,837 shares of the firm's stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total transaction of $1,117,392.00. Following the completion of the transaction, the chief operating officer owned 1,860,790 shares in the company, valued at $29,772,640. The trade was a 3.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 785,917 shares of company stock worth $13,955,610 in the last ninety days. 9.17% of the stock is owned by insiders.

Institutional Trading of SoundHound AI

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Virtu Financial LLC acquired a new stake in SoundHound AI in the 1st quarter worth $2,395,000. Northern Trust Corp grew its position in SoundHound AI by 2.5% in the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock worth $24,190,000 after purchasing an additional 72,766 shares during the last quarter. Carnegie Investment Counsel grew its position in SoundHound AI by 8.9% in the 1st quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock worth $8,131,000 after purchasing an additional 87,810 shares during the last quarter. Liontrust Investment Partners LLP acquired a new stake in SoundHound AI in the 1st quarter worth $1,639,000. Finally, First Manhattan CO. LLC. acquired a new stake in SoundHound AI in the 1st quarter worth $985,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

About SoundHound AI

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.

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