SoundHound AI (NASDAQ:SOUN) Rating Lowered to “Strong Sell” at Zacks Research

SoundHound AI (NASDAQ:SOUN) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Monday,Zacks.com reports.

Several other equities analysts have also issued reports on SOUN. Piper Sandler reduced their target price on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a report on Monday, January 5th. HC Wainwright upped their price objective on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research note on Thursday, October 16th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday. Finally, Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $16.07.

SoundHound AI Stock Down 0.2%

NASDAQ:SOUN traded down $0.02 during trading hours on Monday, hitting $11.06. 7,403,063 shares of the company traded hands, compared to its average volume of 27,467,057. The company has a market cap of $4.65 billion, a PE ratio of -13.22 and a beta of 2.65. The firm’s 50-day simple moving average is $11.73 and its 200-day simple moving average is $13.57. SoundHound AI has a one year low of $6.52 and a one year high of $22.17.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $42.05 million for the quarter, compared to analysts’ expectations of $40.48 million. During the same period in the previous year, the company earned ($0.04) earnings per share. The firm’s revenue for the quarter was up 67.6% compared to the same quarter last year. As a group, equities research analysts expect that SoundHound AI will post -0.38 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, SVP Majid Emami sold 42,600 shares of the stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $480,528.00. Following the sale, the senior vice president owned 565,586 shares in the company, valued at $6,379,810.08. This represents a 7.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider James Ming Hom sold 42,600 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the transaction, the insider owned 803,383 shares of the company’s stock, valued at approximately $9,062,160.24. This trade represents a 5.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 462,265 shares of company stock worth $5,216,518 in the last 90 days. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in SOUN. Sound Income Strategies LLC grew its position in SoundHound AI by 37.3% during the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after acquiring an additional 575 shares during the last quarter. Investors Research Corp boosted its stake in shares of SoundHound AI by 62.4% during the third quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after purchasing an additional 700 shares during the period. EP Wealth Advisors LLC grew its holdings in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after purchasing an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. raised its holdings in SoundHound AI by 2.7% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after buying an additional 830 shares during the last quarter. Finally, Insigneo Advisory Services LLC raised its holdings in SoundHound AI by 7.4% during the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock valued at $200,000 after buying an additional 858 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.