SoundHound AI (NASDAQ:SOUN) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research cut shares of SoundHound AI (NASDAQ:SOUN) from a hold rating to a strong sell rating in a research report released on Monday,Zacks.com reports.

A number of other equities analysts also recently weighed in on SOUN. Piper Sandler cut their price target on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a report on Monday, January 5th. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research report on Thursday, January 8th. HC Wainwright boosted their target price on shares of SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research note on Thursday, October 16th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. Finally, LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Two research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Stock Performance

Shares of SoundHound AI stock traded down $0.00 during mid-day trading on Monday, hitting $11.08. 6,924,344 shares of the stock were exchanged, compared to its average volume of 27,385,805. SoundHound AI has a 12 month low of $6.52 and a 12 month high of $22.17. The company has a 50-day simple moving average of $11.73 and a 200 day simple moving average of $13.57. The company has a market capitalization of $4.65 billion, a P/E ratio of -13.18 and a beta of 2.65.

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

Insider Buying and Selling

In other news, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $828,019.68. Following the transaction, the chief operating officer owned 1,787,459 shares of the company’s stock, valued at $20,162,537.52. This represents a 3.94% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Nitesh Sharan sold 60,780 shares of the stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $685,598.40. Following the transaction, the chief financial officer owned 1,705,148 shares in the company, valued at $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 462,265 shares of company stock valued at $5,216,518 in the last 90 days. 9.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of the company. Danske Bank A S purchased a new position in SoundHound AI in the third quarter valued at $26,000. Investors Research Corp grew its position in shares of SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after acquiring an additional 700 shares during the period. Financial Consulate Inc. purchased a new position in shares of SoundHound AI in the 3rd quarter valued at about $32,000. Sound Income Strategies LLC raised its holdings in SoundHound AI by 37.3% in the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after purchasing an additional 575 shares during the period. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the period. Hedge funds and other 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.