SoundHound AI (NASDAQ:SOUN) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• SoundHound AI has been downgraded from a "hold" rating to a "sell" rating by Wall Street Zen, following recent performance and analyst reports.
• The company's stock has experienced volatility, with a 1-year low of $4.32 and a high of $24.98, currently opening at $13.55.
• Recent quarterly earnings showed a significant revenue increase of 216.3%, but missed the earnings per share estimate, reporting losses of ($0.19).

SoundHound AI (NASDAQ:SOUN - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

SOUN has been the subject of several other reports. HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research note on Monday, May 12th. DA Davidson reduced their target price on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a report on Monday, April 14th. Wedbush increased their target price on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a report on Friday. Northland Securities upgraded 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 given a hold rating and four have issued a buy rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $11.44.

SoundHound AI Stock Performance

Shares of NASDAQ SOUN opened at $13.55 on Friday. The stock has a fifty day moving average price of $10.76 and a two-hundred day moving average price of $10.54. The firm has a market cap of $5.44 billion, a P/E ratio of -21.51 and a beta of 2.57. 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 released 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 for the quarter, compared to the consensus estimate of $32.88 million. SoundHound AI had a negative return on equity of 77.38% and a negative net margin of 171.81%. The business's revenue was up 216.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.11) earnings per share. On average, research analysts predict that SoundHound AI will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In other news, CEO Keyvan Mohajer sold 254,376 shares of the firm's 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Michael Zagorsek sold 117,180 shares of the firm's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $1,096,804.80. Following the completion of the sale, the chief operating officer directly owned 1,346,455 shares in the company, valued at approximately $12,602,818.80. This represents a 8.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 961,289 shares of company stock valued at $9,247,847. Insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

Institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in SoundHound AI by 9.5% during the first 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 in the last quarter. Geode Capital Management LLC boosted its holdings in SoundHound AI by 8.3% during the second quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company's stock valued at $94,759,000 after purchasing an additional 679,436 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in SoundHound AI by 84.2% during the first 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 in the last quarter. Northern Trust Corp boosted its holdings in SoundHound AI by 2.5% during the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after purchasing an additional 72,766 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its holdings in SoundHound AI by 4.5% during the first quarter. Charles Schwab Investment Management Inc. now owns 2,847,261 shares of the company's stock valued at $23,120,000 after purchasing an additional 121,568 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors.

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.

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