SoundHound AI, Inc. (NASDAQ: SOUN) saw a significant 12.3% increase in its share price on Friday, reaching an intraday high of $10.00 before closing at $10.01. The trading volume was approximately 16.89 million shares, marking a sharp 59% decline from its average daily volume of 41.15 million shares. The stock had previously closed at $8.91, making this a notable upward move.
Analyst Ratings and Price Target Revisions
Several equities analysts have recently adjusted their ratings and price targets for SoundHound AI, reflecting growing interest in the stock:
- DA Davidson raised its price target from $9.50 to $13.00, maintaining a “buy” rating (February 28, 2025).
- Northland Securities increased its target from $6.00 to $8.00, assigning a “market perform” rating (January 14, 2025).
- Wedbush set a bullish target, lifting its price forecast from $10.00 to $22.00 and labeling the stock as “outperform” (December 16, 2024).
- Cantor Fitzgerald upgraded the stock to a “hold” rating (February 24, 2025).
- HC Wainwright reiterated a “buy” rating with a $26.00 price target (March 3, 2025).
Currently, SoundHound AI has an average rating of “Hold” and a consensus price target of $12.86, according to MarketBeat data.
Stock Performance and Key Metrics
SoundHound AI’s price action has been volatile, with its 50-day simple moving average standing at $13.05 and its 200-day simple moving average at $10.15.
Key financial ratios include:
- Debt-to-equity ratio: 0.13
- Current ratio: 2.58
- Quick ratio: 2.58
- Market capitalization: $4.00 billion
- Price-to-earnings (P/E) ratio: -28.15
- Beta: 2.62
Earnings Report and Financials
In its latest earnings release (February 27, 2025), SoundHound AI reported:
- Earnings per share (EPS): -$0.69, missing estimates by $0.58 (consensus estimate was -$0.11).
- Revenue: $34.54 million, surpassing analyst expectations of $33.70 million.
- Net margin: -163.58%
- Return on equity: -55.58%
Sell-side analysts predict that SoundHound AI will post an EPS of -$0.38 for the current fiscal year.
Insider Transactions and Institutional Activity
Insider selling has been active over the past three months, with key transactions including:
- James Ming Hom (Insider) sold 58,382 shares at an average price of $18.35, reducing his stake by 7.18% (December 16, 2024).
- Lawrence Marcus (Director) sold 20,000 shares at an average price of $20.47, trimming his position by 15.61% (December 23, 2024).
Over the past quarter, insiders have sold a total of 999,777 shares, amounting to $20.06 million.
Meanwhile, institutional investors have also adjusted their positions:
- Farther Finance Advisors LLC increased holdings by 298.5%, now owning 8,966 shares.
- Sigma Planning Corp boosted its stake by 79.7%, holding 21,640 shares.
- Wolverine Asset Management LLC grew its position by 7.7% to 35,102 shares.
- Victory Capital Management Inc. expanded its holdings by 230.9%, now owning 120,812 shares.
Currently, 19.28% of SoundHound AI’s stock is held by institutional investors and hedge funds, signaling growing interest from the investment community.
