SoundHound AI Reports Earnings, Falls Short of Expectations

SoundHound AI (NASDAQ:SOUN) released its quarterly earnings results on Thursday. The company reported an earnings per share (EPS) of ($0.69), which was significantly below analysts' expectations of ($0.11), resulting in a miss of $0.58. Additionally, the company reported a negative return on equity of 55.58% and a troubling net margin of 163.58%. Following these results, SoundHound AI updated its guidance for the fiscal year 2025.

SoundHound AI Stock Performance

On the day of the earnings report, shares of SoundHound AI were down $0.36, closing at $9.21. The trading volume was notable, with approximately 57,369,602 shares changing hands, compared to the average volume of 55,670,492. Over the past year, the stock has reached a low of $3.50 and a high of $24.98. Currently, SoundHound AI has a market capitalization of $3.62 billion and a price-to-earnings ratio of -25.58, accompanied by a high beta of 2.56. The company also reported a debt-to-equity ratio of 0.13 and a solid current ratio as well as quick ratio, both standing at 2.58. Its moving averages are 50-day at $15.41 and 200-day at $9.84.

Analyst Opinions on SoundHound AI

Several analysts have shared their views regarding SoundHound AI's stock recently. Northland Securities raised their price target for the company from $6.00 to $8.00, assigning it a "market perform" rating. Meanwhile, Wedbush increased their target from $10.00 to $22.00, providing an "outperform" rating. Barclays and LADENBURG THALM/SH SH maintained a "neutral" rating with a price target of $7.00. Overall, four investment analysts have rated the stock with a hold recommendation, while three hold buy ratings. According to MarketBeat, SoundHound AI's average rating is currently "Hold" with a consensus target price of $12.36.

Insider Activity at SoundHound AI

In recent transactions related to SoundHound AI, Director Eric R. Ball sold 50,000 shares on December 5th at an average price of $12.00, amounting to $600,000. Following this sale, he owns approximately 451,756 shares, with a total value of around $5,421,072, reflecting a 9.97% decrease in ownership. Similarly, insider James Ming Hom sold 53,891 shares on December 4th at $10.00 each, for a total of $538,910. After this transaction, he has 813,193 shares valued at $8,131,930, marking a 6.22% decrease in his position. Over the last quarter, insiders have sold a total of 2,722,918 shares amounting to nearly $44.94 million, indicating that corporate insiders currently own about 12.28% of the company's shares.

About SoundHound AI

SoundHound AI, Inc specializes in developing independent voice artificial intelligence (AI) solutions that empower businesses across various industries, including automotive, TV, IoT, and customer service. The company offers products like the Houndify platform, designed to help brands create conversational voice assistants, as well as SoundHound Chat AI for real-time data integration, and SoundHound Smart Answering, which provides AI-driven customer interactions.

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