SoundHound AI shares rise 14% after DA Davidson raises price target
SoundHound AI shares climb 14% after positive analyst outlook
Shares of SoundHound AI, Inc. rose 14.3% following an upgrade from DA Davidson, which raised its price target on the stock from $9.50 to $13.00, signaling strong confidence in the company's future performance.
Key Takeaways
- SoundHound AI shares saw a notable 14.3% increase in value after DA Davidson raised its price target from $9.50 to $13.00. The stock traded as high as $10.94 before stabilizing at $10.53.
- Cantor Fitzgerald upgraded SoundHound AI to a "hold" rating in late February. A consensus of analysts holds a "hold" rating on the stock, with a price target averaging $12.86.
- Key executives, including VP Majid Emami and CEO Keyvan Mohajer, sold large amounts of stock in December.
Stock Price Surge After DA Davidson Upgrade
Shares of SoundHound AI saw a significant 14.3% surge, rising to $10.53 after a report from DA Davidson upgraded its price target for the stock from $9.50 to $13.00. The company's stock traded as high as $10.94 before it adjusted slightly, continuing to perform well during the trading session, reports MarketBeat.
SoundHound AI Inc (SOUN) share price dynamics (2021 - Feb 2025) Source: TradingView
Despite a slight decline in trading volume, with 47.8 million shares exchanging hands compared to the usual volume of 55.2 million, the stock showed signs of investor optimism. This movement came after a series of analyst ratings, suggesting positive future prospects for SoundHound AI, which is known for its advanced voice artificial intelligence solutions.
Analysts Show Confidence
In addition to DA Davidson’s upgrade, Cantor Fitzgerald also showed confidence in SoundHound AI by upgrading its rating to “hold” in late February. Currently, four investment analysts have issued a "hold" rating for the stock, while three analysts have rated it as a “buy.”
According to MarketBeat.com, the consensus rating for SoundHound AI is “Hold,” with a price target of $12.86. This generally positive sentiment towards the company reflects growing confidence in its business model and future potential.
SoundHound AI's expertise in voice AI solutions across various industries, including automotive, IoT, and customer service, positions the company for continued growth. This market positioning is a key factor driving the optimism in the stock.
Executive Stock Sales
Despite the surge in stock price and positive analyst ratings, key executives have sold large quantities of stock in recent months. In December, VP Majid Emami sold 94,067 shares for $851,306.35, reducing his ownership in the company by 11.34%.
Similarly, CEO Keyvan Mohajer sold 156,288 shares in late December at an average price of $20.20, generating over $3.1 million. These sales are noteworthy, though they don't necessarily indicate negative sentiment towards the company's future; they may simply reflect personal financial decisions or tax planning.
Despite these executive sales, SoundHound AI's long-term outlook remains strong, especially with the recent analyst upgrades and ongoing advancements in the voice AI sector.
Recently we wrote, that Spotify exceeded revenue expectations in Q4, reporting its first-ever full-year profit and record-breaking user growth. The company’s focus on efficiency, coupled with price hikes and strategic shifts, fueled its financial turnaround.
