Wedbush Reaffirms "Outperform" Rating for SoundHound AI (NASDAQ:SOUN)

Key Points

• Wedbush has reaffirmed its "outperform" rating for SoundHound AI (NASDAQ:SOUN) with a price target of $16.00, indicating a potential upside of 13.88% from the stock's previous close.
• Despite a substantial revenue increase of 216.3% year-over-year, SoundHound AI reported a loss of ($0.19) earnings per share, missing estimates by ($0.13).
• Insider selling has occurred recently, with CEO Keyvan Mohajer selling over 254,000 shares, representing a 12.69% decrease in his position.

SoundHound AI (NASDAQ:SOUN - Get Free Report)'s stock had its "outperform" rating restated by stock analysts at Wedbush in a report released on Thursday,Benzinga reports. They presently have a $16.00 price target on the stock. Wedbush's price objective would indicate a potential upside of 13.31% from the company's previous close.

A number of other equities analysts have also recently issued reports on the stock. DA Davidson boosted their price objective on shares of SoundHound AI from $15.00 to $17.00 and gave the company a "buy" rating in a research report on Wednesday. LADENBURG THALM/SH SH upgraded shares of 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 Securities upgraded shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target on the stock in a research report on Friday, August 8th. Piper Sandler reiterated a "neutral" rating and set a $12.00 price target on shares of SoundHound AI in a research report on Monday, July 14th. Finally, Wall Street Zen cut shares of SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, SoundHound AI has an average rating of "Moderate Buy" and an average target price of $14.36.

SoundHound AI Stock Performance

NASDAQ:SOUN traded down $0.46 during trading hours on Thursday, reaching $14.12. The company's stock had a trading volume of 46,508,606 shares, compared to its average volume of 61,092,024. The firm has a market capitalization of $5.76 billion, a price-to-earnings ratio of -22.41 and a beta of 2.58. The firm has a 50-day simple moving average of $12.73 and a 200-day simple moving average of $10.59. SoundHound AI has a 1 year low of $4.45 and a 1 year 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) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The business had revenue of $42.68 million during the quarter, compared to analysts' expectations of $32.88 million. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.SoundHound AI's revenue for the quarter was up 216.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.11) EPS. SoundHound AI has set its FY 2025 guidance at EPS. Equities analysts anticipate that SoundHound AI will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling 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 transaction of $28,856.08. Following the completion of the transaction, the chief technology officer owned 716,866 shares in the company, valued at approximately $6,939,262.88. This represents a 0.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael Zagorsek sold 117,180 shares of the stock in a transaction on Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,096,804.80. Following the transaction, the chief operating officer owned 1,346,455 shares of the company's stock, valued at $12,602,818.80. This trade represents a 8.01% decrease in their position. The disclosure for this sale can be found here. Insiders sold 780,965 shares of company stock valued at $7,350,999 in the last quarter. Insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors have recently made changes to their positions in SOUN. Osaic Holdings Inc. increased its stake in SoundHound AI by 14.0% in the 2nd quarter. Osaic Holdings Inc. now owns 498,691 shares of the company's stock worth $5,351,000 after buying an additional 61,212 shares during the period. B. Riley Wealth Advisors Inc. bought a new stake in shares of SoundHound AI in the 2nd quarter valued at about $157,000. Newbridge Financial Services Group Inc. boosted its holdings in shares of SoundHound AI by 6.3% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 31,050 shares of the company's stock valued at $333,000 after buying an additional 1,850 shares in the last quarter. Marex Group plc acquired a new stake in SoundHound AI in the 2nd quarter worth approximately $3,728,000. Finally, Tyler Stone Wealth Management boosted its stake in SoundHound AI by 20.7% in the 2nd quarter. Tyler Stone Wealth Management now owns 32,190 shares of the company's stock worth $345,000 after purchasing an additional 5,510 shares in the last quarter. 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.