SoundHound AI's (SOUN) "Buy" Rating Reaffirmed at HC Wainwright

Key Points

• HC Wainwright has reaffirmed its "buy" rating on SoundHound AI (SOUN) with a price target of $18.00, suggesting a potential upside of 22.53% from the current price.
• SoundHound AI experienced a 216.3% increase in revenue year-over-year, reporting $42.68 million despite missing earnings estimates for the quarter.
• Institutional interest in SoundHound AI is growing, with various hedge funds recently increasing their stakes in the company, collectively owning 19.28% of the stock.

SoundHound AI (NASDAQ:SOUN - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at HC Wainwright in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $18.00 price target on the stock. HC Wainwright's target price would indicate a potential upside of 22.53% from the company's current price.

A number of other analysts have also recently commented on the company. DA Davidson boosted their price objective on SoundHound AI from $15.00 to $17.00 and gave the company a "buy" rating in a research report on Wednesday, September 10th. Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective for the company in a research report on Friday, August 8th. LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $9.00 to $16.00 in a research report on Monday, August 11th. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. Finally, Oppenheimer started coverage on SoundHound AI in a research report on Thursday, September 11th. They set a "market perform" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $14.36.

SoundHound AI Price Performance

Shares of SOUN stock opened at $14.69 on Wednesday. SoundHound AI has a 1-year low of $4.45 and a 1-year high of $24.98. The stock's 50-day moving average is $12.82 and its 200 day moving average is $10.66. The company has a market cap of $5.99 billion, a P/E ratio of -23.32 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results 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). 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 during the quarter, compared to analyst estimates of $32.88 million. During the same period in the prior year, the business posted ($0.11) EPS. SoundHound AI's revenue was up 216.3% compared to the same quarter last year. SoundHound AI has set its FY 2025 guidance at EPS. On average, analysts anticipate that SoundHound AI will post -0.38 EPS for the current year.

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 254,376 shares of the firm's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $2,380,959.36. Following the transaction, the chief executive officer owned 1,749,790 shares in the company, valued at $16,378,034.40. This trade represents a 12.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Majid Emami sold 60,295 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $10.00, for a total value of $602,950.00. Following the transaction, the vice president owned 477,657 shares in the company, valued at $4,776,570. This represents a 11.21% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 780,965 shares of company stock worth $7,350,999 over the last ninety days. Company insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in the stock. Orion Capital Management LLC purchased a new stake in shares of SoundHound AI in the fourth quarter valued at approximately $30,000. Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after purchasing an additional 1,060 shares during the last quarter. Advisors Asset Management Inc. raised its holdings in SoundHound AI by 68.4% during the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock worth $27,000 after purchasing an additional 1,023 shares during the last quarter. Huntington National Bank raised its holdings in SoundHound AI by 48.8% during the second 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 last quarter. Finally, Kozak & Associates Inc. raised its holdings in SoundHound AI by 6,249.0% during the second 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 last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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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