SoundHound AI, Inc. (NASDAQ:SOUN) has faced a downward adjustment in its earnings estimates from HC Wainwright, a move that reflects changing market expectations. In a research report issued on January 12, 2025, analyst S. Buck revised the company’s earnings projection for the fourth quarter of 2025 from a loss of $0.08 per share to $0.09 per share. Despite this adjustment, HC Wainwright maintains a “Buy” rating on the stock and has set a price target of $26.00.
The consensus estimate for SoundHound AI’s full-year earnings currently stands at a loss of $0.38 per share. This adjustment comes as several other analysts have also issued their reports regarding the company’s performance. Notably, Cantor Fitzgerald upgraded SoundHound AI from a “neutral” to an “overweight” rating, increasing its target price from $13.00 to $15.00. Conversely, Zacks Research downgraded the stock from a “hold” to a “strong sell” rating, a decision that could exert negative pressure on investor sentiment.
Market Performance and Analyst Ratings
In the broader context, SoundHound AI’s stock opened at $11.28 on January 12. The company has a market capitalization of $4.74 billion and operates with a P/E ratio of -13.43. The stock has seen considerable volatility, with a fifty-two week low of $6.52 and a high of $22.17.
Recent earnings results also showed some promise. On November 6, 2024, SoundHound AI reported earnings of ($0.03) per share, beating analysts’ expectations of ($0.09) per share by $0.06. The company’s revenue for that quarter was $42.05 million, surpassing the estimated $40.48 million. This reflects a year-over-year revenue increase of 67.6%.
A range of analysts have provided diverse ratings on SoundHound AI. According to MarketBeat, the stock has a consensus rating of “Moderate Buy,” with an average price target of $16.07. The distribution of ratings includes two “Strong Buy” ratings, five “Buy” ratings, two “Hold” ratings, and two “Sell” ratings.
Insider Trading and Institutional Investments
Insider trading activity has also been notable. On December 22, 2024, Nitesh Sharan, the Chief Financial Officer, sold 60,780 shares at an average price of $11.28, totaling approximately $685,598. Following this transaction, Sharan retained 1,705,148 shares, valued at around $19.23 million, representing a 3.44% decrease in his ownership.
In addition, other institutional investors have adjusted their stakes in SoundHound AI. Northwestern Mutual Wealth Management Co. increased its holdings by 83.1%, now owning 2,336 shares worth $25,000. Danske Bank A S acquired new shares valued at approximately $26,000, while Advisors Asset Management Inc. has grown its position by 68.4%.
Recent insider sales, such as that of Timothy Stonehocker, the Chief Technology Officer, who sold 29,676 shares, have drawn attention. These insider transactions can sometimes signal to investors about the company’s future outlook, particularly when multiple executives are selling shares.
As SoundHound AI continues to innovate in the voice AI and conversational intelligence space, the diverse analyst opinions and fluctuating stock performance indicate a complex landscape for investors. The company’s ongoing development of technologies such as the Houndify voice AI platform may play a crucial role in shaping its market trajectory in the coming months.
