SoundHound AI (NASDAQ:SOUN) Lowered to Strong Sell Rating by Wall Street Zen

Wall Street Zen cut shares of SoundHound AI (NASDAQ:SOUN) from a sell rating to a strong sell rating in a report published on Saturday,Wall Street Zen reports.

SOUN has been the subject of several other reports. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. Finally, Piper Sandler decreased their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, SoundHound AI has a consensus rating of “Moderate Buy” and an average target price of $13.60.

SoundHound AI Price Performance

SoundHound AI stock opened at $6.74 on Friday. The stock’s 50-day moving average is $6.75 and its 200-day moving average is $7.34. The company has a market cap of $2.99 billion, a price-to-earnings ratio of -17.74 and a beta of 2.66. SoundHound AI has a 12 month low of $5.65 and a 12 month high of $22.17.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.11. The business had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The company’s revenue was up 45.0% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.19) EPS. Research analysts anticipate that SoundHound AI will post -0.33 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the sale, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the sale, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. This represents a 5.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 269,365 shares of company stock valued at $2,009,047 over the last three months. Company insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Hollencrest Capital Management grew its stake in SoundHound AI by 197.5% during the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after purchasing an additional 2,400 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC boosted its stake in shares of SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares during the last quarter. Danske Bank A S acquired a new stake in shares of SoundHound AI during the third quarter worth approximately $26,000. Finally, SHP Wealth Management acquired a new stake in shares of SoundHound AI during the fourth quarter worth approximately $27,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

More SoundHound AI News

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: LivePerson acquisition completed: SoundHound officially closed its acquisition of LivePerson, removing a major transaction uncertainty and combining SoundHound’s voice-AI technology with LivePerson’s customer-engagement and omnichannel capabilities. The enlarged platform is expected to broaden SoundHound’s customer base and revenue opportunities. SoundHound AI Completes Acquisition of LivePerson
• Positive Sentiment: New CFO appointed: John Collins will serve as CFO of the combined company, providing dedicated financial leadership as SoundHound integrates LivePerson and pursues its expansion strategy. SoundHound AI Completes Acquisition of LivePerson
• Positive Sentiment: Growth potential remains substantial: Prior coverage highlighted management’s projection for combined revenue of approximately $350 million to $400 million next year if the LivePerson deal closes. The acquisition could accelerate SoundHound’s scale across voice, customer-service and AI-agent applications. Where Will SoundHound AI Stock Be in 1 Year?
• Neutral Sentiment: Shareholder approval cleared the final major hurdle: LivePerson investors approved the transaction, allowing the companies to proceed to closing. The completed deal now shifts attention from regulatory and voting risk to integration, execution and the financial impact of the combination. SoundHound AI Wins Stockholder Approval
• Negative Sentiment: Valuation remains a concern: Despite a roughly 188% three-year gain, recent analysis continues to characterize SOUN as expensive on market multiples. Investors may demand evidence that the LivePerson acquisition can produce profitable growth before assigning the shares a higher valuation. Is SoundHound AI Getting Too Rich?
• Negative Sentiment: Profitability and post-earnings pressure persist: SoundHound’s latest quarter beat EPS and revenue expectations, with revenue up 45% year over year, but the company remains unprofitable. The stock has weakened since earnings as investors focus on future estimates, execution risk and the path to sustainable profits. Why Is SoundHound AI Down Since Its Last Earnings Report?
• Positive Sentiment: High short interest could amplify volatility: Nearly 40% short interest creates potential for a short squeeze if the acquisition produces strong operating results, although it also signals considerable skepticism among investors. SoundHound Stock and Short Interest

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.