Cantor Fitzgerald Estimates SoundHound AI's FY2024 Earnings

SoundHound AI, Inc. (NASDAQ:SOUN) has garnered attention from analysts at Cantor Fitzgerald, who recently shared their earnings estimates for the fiscal year 2024. In a research note dated February 24th, analyst T. Blakey projected that SoundHound AI will report an earnings per share (EPS) of ($0.37). Currently, Cantor Fitzgerald holds a "Hold" rating for the stock. The consensus estimate for the company’s full-year earnings is slightly lower, sitting at ($0.38) per share. Additionally, Cantor Fitzgerald has predicted SoundHound AI's earnings for fiscal year 2025 to be ($0.21) EPS.

Recently, SoundHound AI released its quarterly earnings results on February 27th. The report indicated a substantial loss of ($0.69) EPS, which fell short of analysts’ expectations of ($0.11) by ($0.58). The company reported a negative return on equity of 55.58% and a concerning negative net margin of 163.58%.

Other financial analysts have also provided insights on SoundHound AI's stock. Notably, analysts at Wedbush increased their target price for the stock from $10.00 to $22.00, while giving the company an "outperform" rating in their December 16th report. HC Wainwright reiterated a "buy" rating and set a target price of $26.00 on January 13th. Meanwhile, Northland Securities also raised their target price from $6.00 to $8.00, categorizing the stock as a “market perform” on January 14th. Barclays maintained a “neutral” rating with a $7.00 price target as of November 13th. Additionally, LADENBURG THALM/SH SH set a $7.00 price target while reiterating a “neutral” rating on the same date. Currently, SoundHound AI has four analysts rating it as a hold, with three offering a buy rating. According to MarketBeat, the average rating for the company is "Hold" with an average target price of $12.36.

SoundHound AI Stock Analysis

On Wednesday, SoundHound AI’s shares opened at $9.21. The stock has experienced a 52-week low of $3.50 and a high of $24.98. Furthermore, the company has a debt-to-equity ratio of 0.13, a current ratio of 2.58, and a quick ratio of 2.58. The stock’s 50-day moving average stands at $15.41, while the 200-day moving average is $9.84. SoundHound AI has a market capitalization of $3.62 billion and a negative price-to-earnings ratio of -25.58.

Institutional Activity

Changes in institutional investments have also been noted. Vanguard Group Inc. increased its shares in SoundHound AI by 35.6% during the fourth quarter, now holding 32,031,662 shares valued at approximately $635.5 million following the purchase of an additional 8,402,881 shares. Rockefeller Capital Management bought a new stake valued at around $41.6 million. Invesco Ltd. significantly boosted its holdings in SoundHound AI by 1,386.2% during the fourth quarter, with a total of 1,382,371 shares valued at $27.4 million. Other investors, including Driehaus Capital Management and Capital Fund Management, have also acquired new positions in the company. Currently, institutional investors own about 19.28% of the company’s shares.

Insider Transactions

Recent insider trading activities were also highlighted. VP Majid Emami sold 94,067 shares of SoundHound AI on December 2nd, 2024, at an average price of $9.05, totaling $851,306.35, which decreased his ownership by 11.34%. Following this, CEO Keyvan Mohajer sold 465,394 shares on December 9th at an average price of $15.04, totaling approximately $6.99 million, representing a 16.83% decrease in his holdings. Over the last 90 days, insiders have traded a total of 2,722,918 shares worth nearly $44.94 million, with insider ownership standing at 12.28%.

About SoundHound AI

SoundHound AI, Inc. specializes in developing independent voice AI solutions for various industries such as automotive, broadcasting, IoT, and customer service. Their key products include the Houndify platform, which provides tools for brands to create conversational voice assistants, and the SoundHound Chat AI, which integrates real-time data from different domains. SoundHound Smart Answering offers businesses customized AI-powered voice assistants.

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