SoundHound AI Shares Surge Following Analyst Upgrade

SoundHound AI, Inc. (NASDAQ:SOUN) has seen its shares gapping up before trading on Monday, due to an upgrade from HC Wainwright. The research firm raised its price target for the stock significantly, from $8.00 to $26.00. Previously, the stock closed at $21.76, but opened at a higher price of $22.70. Currently, HC Wainwright holds a buy rating on SoundHound AI.

Recent trading data reveals that SoundHound AI shares were last reported at $20.00, with substantial trading volume of 27,616,465 shares exchanged. Other analysts have also shared their outlooks on the company. For instance, Wedbush increased their price target from $10.00 to $22.00, ranking the company as “outperform” in a report issued on December 16. Barclays maintained a “neutral” rating, setting a target price of $7.00 on November 13.

Additionally, DA Davidson reaffirmed a “buy” rating with a target price of $9.50 in their research note on September 30. In total, three analysts have assigned the stock a hold rating, whereas four have rated it as a buy. According to MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” with an average price target of $12.07.

Recent Insider Transactions

In other news regarding SoundHound AI, CEO Keyvan Mohajer sold 465,394 shares on December 9 at an average price of $15.04, achieving a total of approximately $6.99 million. After this transaction, Mohajer retains ownership of 2,299,148 shares, valued around $34.58 million, reflecting a decrease of 16.83% in their stake.

Furthermore, COO Michael Zagorsek sold 138,906 shares on December 16 at an average price of $17.63, totaling around $2.45 million. Following this sale, Zagorsek’s remaining shareholding stands at 1,473,322 shares, worth around $25.97 million, representing an 8.62% decrease in ownership. In the last three months, insiders sold a cumulative total of 2,258,242 shares valued at approximately $34.75 million, with corporate insiders owning about 12.28% of the company's shares.

Institutional Interest in SoundHound AI

Recently, several institutional investors have adjusted their holdings in SoundHound AI. Kings Path Partners LLC acquired a new stake worth $28,000 during the second quarter. Meanwhile, International Assets Investment Management LLC bought a new stake valued at about $31,000 in the same period. NBC Securities Inc. raised their holdings by 97.8% in the third quarter, now owning 7,720 shares worth approximately $35,000 after purchasing additional shares.

Amalgamated Bank enhanced its position during the second quarter, increasing ownership by 108% to 9,819 shares valued at $39,000. Signaturefd LLC also boosted its shares by 27.3%, owning 10,255 shares now worth around $41,000. Overall, institutional investors and hedge funds hold approximately 19.28% of SoundHound AI’s stock.

Stock Performance Overview

The company’s financial metrics reveal a debt-to-equity ratio of 0.13, a current ratio and quick ratio both at 2.58, and a market capitalization of $7.55 billion. Currently, the stock has a price-to-earnings ratio of -56.75 and a high beta of 3.03. Over the past 50 days, the stock’s moving average is $9.01 and the 200-day moving average is $6.23.

SoundHound AI recently released earnings on November 12, reporting a loss of ($0.06) earnings per share, surpassing analysts' expectations of ($0.07). The firm tallied revenues of $25.10 million for this quarter, exceeding forecasts of $23.02 million, which indicates a notable rise of 88.7% compared to the same quarter last year. Analysts’ consensus anticipates SoundHound AI citing an EPS of -0.38 for the current year.

About SoundHound AI

SoundHound AI, Inc. specializes in developing independent voice artificial intelligence (AI) solutions intended for various sectors, including automotive, television, IoT, and customer service. Their products encompass the Houndify platform that provides tools for brands to construct conversational voice assistants and SoundHound Chat AI that offers real-time data integration across diverse domains.

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