SoundHound AI, Inc. (NASDAQ:SOUN) Stock Has Average Price Target of $11.50

SoundHound AI, Inc. (NASDAQ:SOUN) has earned a consensus rating of “Moderate Buy” from the eight research firms that are covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, three have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $11.50.

Several analysts have recently weighed in on SOUN shares. DA Davidson reduced 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 report on Thursday, August 6th. Weiss Ratings upgraded shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, October 15th. Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 24th. Piper Sandler reduced their price target on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Finally, Yorkville Ives began coverage on shares of SoundHound AI in a research note on Monday, October 5th. They issued an “in-line” rating and a $6.50 price objective for the company.

SoundHound AI Stock Performance

NASDAQ:SOUN opened at $4.26 on Friday. The stock has a 50-day simple moving average of $5.56 and a 200-day simple moving average of $7.06. The stock has a market cap of $1.89 billion, a P/E ratio of -11.21 and a beta of 2.89. SoundHound AI has a 1 year low of $3.88 and a 1 year high of $15.68.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, November 5th. The company reported ($0.05) earnings per share for the quarter, topping the consensus estimate of ($0.12) by $0.07. The business had revenue of $62.43 million for the quarter, compared to analyst estimates of $61.71 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The business’s quarterly revenue was up 48.5% on a year-over-year basis. During the same quarter last year, the company earned ($0.03) EPS. On average, equities research analysts predict that SoundHound AI will post -0.39 EPS for the current year.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Revenue reached a record $62.43 million, up 48.5% year over year. SoundHound also said it expects sustained adjusted EBITDA profitability in the second half of 2027 and announced that it closed its LivePerson acquisition. SoundHound AI Q3 results and outlook
• Positive Sentiment: A recently expanded Ultraviolette partnership will bring SoundHound’s voice AI co-pilot to the EV maker’s global electric-motorcycle lineup, adding a commercial deployment opportunity. SoundHound and Ultraviolette expand partnership
• Neutral Sentiment: Quarterly comparisons are mixed: SoundHound’s $0.05-per-share loss was narrower than some analyst estimates, while reports differ on revenue expectations, with one describing a slight miss despite the strong year-over-year growth. Q3 earnings estimates
• Negative Sentiment: The company remains unprofitable, and the 2027 adjusted EBITDA target underscores that meaningful profitability is not expected imminently. Reports also highlighted a GAAP loss and revenue below some market estimates, which may be frustrating investors focused on near-term execution. Q3 sales expectations and loss

Insider Transactions at SoundHound AI

In other news, COO Michael Zagorsek sold 71,113 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the sale, the chief operating officer directly owned 2,600,231 shares of the company’s stock, valued at approximately $16,459,462.23. The trade was a 2.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 38,730 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the sale, the insider directly owned 1,105,555 shares of the company’s stock, valued at approximately $6,998,163.15. This trade represents a 3.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 288,758 shares of company stock worth $1,828,598 over the last three months. 8.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the business. Hollencrest Capital Management increased its stake in SoundHound AI by 197.5% in the first 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 during the period. Financial Management Professionals Inc. purchased a new stake in SoundHound AI during the 3rd quarter valued at approximately $30,000. Fulcrum Asset Management LLP purchased a new stake in SoundHound AI during the 3rd quarter valued at approximately $45,000. 180 Wealth Advisors LLC acquired a new stake in SoundHound AI during the 1st quarter worth approximately $69,000. Finally, Krilogy Financial LLC acquired a new stake in SoundHound AI during the 3rd quarter worth approximately $62,000. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.