Weiss Ratings Reaffirms "Sell (D-)" Rating for SoundHound AI (NASDAQ:SOUN)

Key Points

• Weiss Ratings has reaffirmed a "Sell (D-)" rating for SoundHound AI (NASDAQ:SOUN), indicating a cautious outlook for the stock.
• SoundHound AI's stock saw a notable 10.3% increase during trading on Tuesday, reaching $21.11, with a trading volume of 49,461,799 shares.
• The company reported a significant 216.3% revenue increase year-over-year, but its earnings per share missed estimates, posting ($0.19) against a consensus of ($0.06).

SoundHound AI (NASDAQ:SOUN - Get Free Report)'s stock had its "sell (d-)" rating restated by equities research analysts at Weiss Ratings in a research note issued to investors on Tuesday,Weiss Ratings reports.

A number of other research firms have also recently weighed in on SOUN. Wall Street Zen cut shares of SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. DA Davidson raised their price objective on shares of SoundHound AI from $15.00 to $17.00 and gave the stock a "buy" rating in a research report on Wednesday, September 10th. Northland Securities raised shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective on the stock in a report on Friday, August 8th. HC Wainwright restated a "buy" rating and issued a $18.00 target price on shares of SoundHound AI in a report on Wednesday, September 17th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and upped their target price for the company from $9.00 to $16.00 in a research note on Monday, August 11th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, SoundHound AI currently has an average rating of "Moderate Buy" and an average target price of $14.36.

SoundHound AI Stock Up 10.3%

SOUN traded up $1.97 during trading hours on Tuesday, hitting $21.11. The stock had a trading volume of 49,461,799 shares, compared to its average volume of 46,677,063. The stock has a market cap of $8.61 billion, a PE ratio of -33.54 and a beta of 2.60. SoundHound AI has a 1 year low of $4.86 and a 1 year high of $24.98. The company's fifty day simple moving average is $14.97 and its 200 day simple moving average is $11.68.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates 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 the consensus estimate of $32.88 million. During the same quarter in the prior year, the business posted ($0.11) earnings per share. SoundHound AI's quarterly revenue was up 216.3% compared to the same quarter last year. SoundHound AI has set its FY 2025 guidance at EPS. As a group, equities analysts expect that SoundHound AI will post -0.38 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In related news, COO Michael Zagorsek sold 69,837 shares of SoundHound AI stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $1,117,392.00. Following the transaction, the chief operating officer directly owned 1,860,790 shares in the company, valued at approximately $29,772,640. The trade was a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Keyvan Mohajer sold 118,654 shares of SoundHound AI stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $2,373,080.00. Following the transaction, the chief executive officer owned 2,342,613 shares in the company, valued at $46,852,260. This trade represents a 4.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 725,541 shares of company stock worth $12,675,035 in the last three months. 9.17% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently made changes to their positions in SOUN. GAMMA Investing LLC lifted its position in shares of SoundHound AI by 1,477.7% in the first quarter. GAMMA Investing LLC now owns 11,912 shares of the company's stock valued at $97,000 after acquiring an additional 11,157 shares in the last quarter. Janney Montgomery Scott LLC grew its holdings in SoundHound AI by 7.3% during the 1st quarter. Janney Montgomery Scott LLC now owns 22,193 shares of the company's stock valued at $180,000 after buying an additional 1,502 shares in the last quarter. Insigneo Advisory Services LLC purchased a new position in SoundHound AI during the 1st quarter valued at approximately $94,000. Rakuten Securities Inc. purchased a new position in SoundHound AI during the 1st quarter valued at approximately $92,000. Finally, Kingswood Wealth Advisors LLC grew its holdings in SoundHound AI by 58.2% during the 1st quarter. Kingswood Wealth Advisors LLC now owns 25,275 shares of the company's stock valued at $207,000 after buying an additional 9,300 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

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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