SoundHound AI, Inc. (NASDAQ:SOUN) received a revised earnings outlook from HC Wainwright, which reduced its Q4 2025 earnings estimates. In a report issued on January 12, 2024, analyst S. Buck adjusted the forecast from a loss of ($0.08) per share to ($0.09) per share. Despite this adjustment, HC Wainwright maintained a “Buy” rating on the stock, setting a price target of $26.00. The consensus estimate for SoundHound AI’s full-year earnings is projected at ($0.38) per share.
Several other analysts have also weighed in on SoundHound AI recently. Cantor Fitzgerald upgraded the company’s stock from “neutral” to “overweight” on December 12, 2023, raising the target price from $13.00 to $15.00. Conversely, Weiss Ratings reaffirmed a “sell (d-)” rating on January 9, 2024. In further analysis, LADENBURG THALM/SH upgraded the stock to a “strong-buy” rating on December 18, 2023, while Piper Sandler lowered its price target from $15.00 to $11.00 and set a “neutral” rating on January 5, 2024. Additionally, Zacks Research downgraded SoundHound from “hold” to “strong sell” earlier this week.
As of now, two investment analysts have rated SoundHound AI as a Strong Buy, five have issued a Buy rating, two have rated it as Hold, and two have given it a Sell rating. According to MarketBeat, the overall consensus rating stands at “Moderate Buy,” with an average price target of $16.07.
Current Market Performance and Institutional Trading
On January 10, 2024, shares of SoundHound AI opened at $11.28. The company’s stock has a 50-day moving average of $11.64 and a 200-day moving average of $13.55. Over the past year, the stock has fluctuated significantly, reaching a 52-week low of $6.52 and a high of $22.17. SoundHound AI’s market capitalization currently stands at $4.74 billion, with a P/E ratio of -13.43.
In its most recent earnings report released on November 6, 2023, SoundHound AI reported a loss of ($0.03) per share, surpassing analysts’ consensus expectations of ($0.09) by $0.06. The company generated revenue of $42.05 million, exceeding projections of $40.48 million. Although the company reported a negative net margin of 211.16% and a negative return on equity of 93.64%, its revenue reflected a year-over-year increase of 67.6%.
Institutional investors are actively adjusting their positions in SoundHound AI. Recently, Northwestern Mutual Wealth Management Co. increased its stake by 83.1% during the second quarter, now holding 2,336 shares valued at approximately $25,000. Similarly, Advisors Asset Management Inc. expanded its position by 68.4%, acquiring an additional 1,023 shares.
Insider Transactions and Market Sentiment
Insider trading has also been notable, with Nitesh Sharan, the Chief Financial Officer, selling 60,780 shares on December 22, 2023, at an average price of $11.28, totaling about $685,598.40. Following this sale, Sharan retained 1,705,148 shares valued at approximately $19.23 million. In another transaction, Senior Vice President Majid Emami sold 32,741 shares on December 26, 2023, at an average price of $10.66, resulting in a total of about $349,019.06. These insider sales can influence market perception, especially when multiple transactions occur within a short timeframe.
This week has seen mixed sentiments regarding SoundHound AI. The introduction of a new Vision AI approach, which combines visual recognition with its conversational voice technology, has been received positively. This innovation could enhance the company’s offerings in automotive integrations and contextual services. However, the downgrade from Zacks Research to “strong sell” has created some downward pressure, despite other analysts maintaining constructive views.
Founded in 2005 and headquartered in Santa Clara, California, SoundHound AI specializes in voice AI and conversational intelligence. The company is best known for its music discovery applications but has successfully pivoted towards enterprise-grade voice solutions, offering customizable technologies that integrate conversational intelligence into various products and services.
As SoundHound AI navigates a challenging market environment, ongoing developments and analyst evaluations will continue to shape its financial outlook and investor sentiment.
