SoundHound AI, Inc. (NASDAQ:SOUN) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) have been given an average recommendation of “Moderate Buy” by the ten ratings firms that are currently covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, two have given a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $16.0714.

SOUN has been the subject of a number of analyst reports. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. DA Davidson set a $14.00 target price on shares of SoundHound AI in a research note on Thursday, January 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Finally, HC Wainwright increased their price objective on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research note on Thursday, October 16th.

SoundHound AI Trading Down 1.9%

Shares of SOUN stock opened at $8.26 on Friday. SoundHound AI has a 12 month low of $6.52 and a 12 month high of $22.17. The stock has a market cap of $3.47 billion, a P/E ratio of -9.83 and a beta of 2.64. The company has a 50 day simple moving average of $10.93 and a two-hundred day simple moving average of $13.39.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The firm had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. During the same quarter in the previous year, the firm posted ($0.04) EPS. The company’s revenue for the quarter was up 67.6% compared to the same quarter last year. As a group, equities analysts forecast that SoundHound AI will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Nitesh Sharan sold 60,780 shares of the stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $685,598.40. Following the completion of the sale, the chief financial officer owned 1,705,148 shares in the company, valued at approximately $19,234,069.44. This trade represents a 3.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Timothy Stonehocker sold 29,676 shares of SoundHound AI stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $12.00, for a total value of $356,112.00. Following the sale, the chief technology officer directly owned 544,179 shares in the company, valued at $6,530,148. This trade represents a 5.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 462,265 shares of company stock worth $5,216,518 in the last three months. 9.17% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of SOUN. Vanguard Group Inc. grew its stake in SoundHound AI by 16.4% during the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock valued at $698,798,000 after acquiring an additional 6,132,648 shares in the last quarter. UBS Group AG boosted its holdings in shares of SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the last quarter. Jump Financial LLC purchased a new position in shares of SoundHound AI during the third quarter valued at about $21,679,000. HRT Financial LP bought a new stake in shares of SoundHound AI in the second quarter worth about $11,914,000. Finally, Goldman Sachs Group Inc. increased its holdings in shares of SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after purchasing an additional 1,085,473 shares during the last quarter. Institutional investors own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.