Wedbush Forecasts Strong Price Appreciation for SoundHound AI (NASDAQ:SOUN) Stock

Key Points

• Wedbush raised the price target for SoundHound AI (NASDAQ:SOUN) from $15.00 to $16.00, indicating a potential upside of 14.53% from its previous close, while maintaining an "outperform" rating.
• Despite the positive outlook from Wedbush, other analysts have varied opinions, with DA Davidson reducing their target to $10.00, and some analysts maintaining buy ratings.
• SoundHound AI reported a quarterly revenue of $42.68 million, which is a significant year-over-year increase of 216.3%, although it still fell short of expected earnings per share, reporting ($0.19).

SoundHound AI (NASDAQ:SOUN - Free Report) had its target price raised by Wedbush from $15.00 to $16.00 in a report released on Friday morning,Benzinga reports. They currently have an outperform rating on the stock.

SOUN has been the subject of several other research reports. HC Wainwright lowered their price target on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. DA Davidson lowered their target price on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a report on Monday, April 14th. Northland Securities upgraded shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a report on Friday. Finally, Piper Sandler restated a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a report on Monday, July 14th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, four have given a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, SoundHound AI presently has an average rating of "Moderate Buy" and a consensus price target of $11.44.

SoundHound AI Price Performance

Shares of SOUN stock traded up $2.83 during trading on Friday, reaching $13.55. The company's stock had a trading volume of 206,161,228 shares, compared to its average volume of 36,324,236. The company has a market capitalization of $5.44 billion, a price-to-earnings ratio of -21.51 and a beta of 2.57. The stock's 50-day moving average price is $10.76 and its 200 day moving average price is $10.54. SoundHound AI has a 1-year low of $4.32 and a 1-year high of $24.98.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted 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 77.38% and a negative net margin of 171.81%. The firm had revenue of $42.68 million for the quarter, compared to analyst estimates of $32.88 million. During the same quarter last year, the firm earned ($0.11) EPS. The company's revenue was up 216.3% on a year-over-year basis. On average, sell-side analysts anticipate that SoundHound AI will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 2,981 shares of the company's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $9.68, for a total value of $28,856.08. Following the completion of the sale, the chief technology officer owned 716,866 shares in the company, valued at $6,939,262.88. This represents a 0.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Nitesh Sharan sold 111,111 shares of the company's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the transaction, the chief financial officer owned 1,442,900 shares of the company's stock, 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. Insiders have sold 961,289 shares of company stock worth $9,247,847 over the last 90 days. Company insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently bought and sold shares of the company. Orion Capital Management LLC purchased a new position in SoundHound AI during the 4th quarter worth $30,000. AlphaQuest LLC acquired a new position in shares of SoundHound AI during the 1st quarter worth $32,000. Huntington National Bank grew its stake in shares of SoundHound AI by 48.8% during the 2nd quarter. Huntington National Bank now owns 3,050 shares of the company's stock worth $33,000 after purchasing an additional 1,000 shares during the period. Golden State Wealth Management LLC grew its stake in shares of SoundHound AI by 100.0% during the 1st quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company's stock worth $34,000 after purchasing an additional 2,115 shares during the period. Finally, Kozak & Associates Inc. grew its stake in shares of SoundHound AI by 6,249.0% during the 2nd quarter. Kozak & Associates Inc. now owns 3,238 shares of the company's stock worth $35,000 after purchasing an additional 3,187 shares during the period. Hedge funds and other institutional investors own 19.28% of the company's stock.

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.