SoundHound AI Price Target Increased to $8.00

SoundHound AI (NASDAQ:SOUN) has received a price target increase from Northland Securities, which raised its target from $6.00 to $8.00. This adjustment was made in a research note released to investors on Tuesday, stating that the company holds a "market perform" rating for its stock.

According to this new price target, there is a potential downside of 37.60% from the company's previous closing price. Investors and analysts are keen to evaluate how this adjustment plays out in the stock market.

Analyst Ratings Overview

Several other research analysts have shared their views on SoundHound AI as well. Barclays maintained a "neutral" rating and set a target price of $7.00 in its report. Similarly, HC Wainwright reiterated a "buy" rating and gave a more bullish price objective of $26.00. On the other hand, Wedbush recently raised its target price on SoundHound AI from $10.00 to $22.00 while keeping an "outperform" rating.

Furthermore, LADENBURG THALM/SH SH also reasserted a "neutral" rating with a $7.00 target, mirroring Barclays' assessment. Meanwhile, DA Davidson has a "buy" rating with a price target of $9.50. Currently, there are three analysts with a hold rating and four with a buy rating. According to the average market analysis, SoundHound AI holds a "Moderate Buy" rating with an average price target set at $12.36.

Current Stock Performance

As of Tuesday, shares of SoundHound AI opened at $12.82. The stock has a fifty-day simple moving average of $13.44 and a 200-day simple moving average of $7.90. With a market cap of approximately $4.74 billion, the company has a price-to-earnings ratio (PE ratio) of -35.61, and a beta of 2.63. Over the last twelve months, the stock has fluctuated with a low of $1.62 and a high of $24.98.

Earnings Results

In its most recent earnings report dated November 12, SoundHound AI reported earnings of ($0.06) per share, surpassing the consensus estimate of ($0.07) by a small margin. The revenue for the quarter stood at $25.10 million, which also exceeded analyst predictions of $23.02 million. Despite having a negative net margin of 163.58% and a negative return on equity of 55.58%, the company’s revenue showed significant growth, increasing by 88.7% compared to the same quarter last year when it reported ($0.09) per share.

Insider Activity

In related news, there have been some insider sales at SoundHound AI. VP Majid Emami sold 37,459 shares at an average price of $20.30, realizing over $760,000. This was a 5.09% decrease in his holdings. Meanwhile, Director Lawrence Marcus also sold 30,000 shares at an average price of $7.15, with a total transaction value of $214,500. Following these transactions, insider sales for the quarter amounted to approximately $45.4 million.

Institutional Investments

Looking at institutional investor activities, several firms have recently bought into SoundHound AI. SeaCrest Wealth Management LLC established a new position valued at approximately $944,000 in the fourth quarter, while Kieckhefer Group LLC invested about $3.4 million. Other significant institutional investments were made by ST Germain D J Co. Inc., which increased its stake by 33.2%, and Oriental Harbor Investment Fund, which also established a new position valued around $8.96 million. Currently, institutional investors hold about 19.28% of the company's stock.

About SoundHound AI

SoundHound AI, Inc is a company that develops voice artificial intelligence (AI) solutions designed for various industries, including automotive, TV, IoT, and customer service. Its flagship product, the Houndify platform, offers businesses tools to create conversational voice assistants and integrate APIs for voice queries, custom commands, and analytics.

SoundHound, AI, Finance