Eric R. Ball (NYSE:), a director at SoundHound AI, Inc. (NASDAQ:), has reported the sale of 100,000 shares of Class A common stock over two transactions. The sales, which took place on November 22 and November 25, 2024, were executed at prices ranging from $8.0345 to $8.4228 per share, totaling approximately $809,491.
The first transaction involved the sale of 50,000 shares at $8.00 per share, amounting to $400,000. The second transaction included the sale of 20,000 shares at a weighted-average price of $8.4228, and 30,000 shares at a weighted-average price of $8.0345, with these sales totaling $409,491.
Following these transactions, Ball retains direct and indirect ownership of 110,907 shares, with some held in a trust for which he is a joint trustee. The sales were conducted under a pre-established Rule 10b5-1 trading plan, which was modified in June 2024.
In other recent news, SoundHound AI, a voice artificial intelligence company, reported a significant increase in revenue for the third quarter of 2024, reaching $25.1 million, surpassing the forecasted $22.6 million. This achievement is largely attributed to organic demand growth and contributions from recent mergers and acquisitions. In response to the heightened business demand, SoundHound AI’s management has revised its revenue projections upward for the fourth quarter of 2024 and the full year of 2025, expecting revenues to range between $155.0 million and $175.0 million.
H.C. Wainwright responded to these positive results by raising its price target for SoundHound AI shares to $8.00, while maintaining a Buy rating. The company’s robust financial health, with a cash position of $135.6 million and minimal debt, provides flexibility for future growth initiatives or potential mergers and acquisitions.
In addition to financial growth, SoundHound AI has reported significant strides in its partnership with Apivia Courtage, a French wholesale broker. The collaboration has seen the deployment of SoundHound’s Amelia AI Agents to handle customer service calls, managing over 100,000 calls and reducing the volume of direct customer queries by nearly 20%. The implementation of Amelia AI Agents has allowed Apivia Courtage to reallocate its human workforce towards more complex tasks and client relationships. These are just a few of the recent developments at SoundHound AI.
InvestingPro Insights
SoundHound AI, Inc. (NASDAQ:SOUN) has been experiencing significant market momentum, as evidenced by its strong performance across various timeframes. According to InvestingPro data, the company has seen a remarkable 33.28% return in just the past week and an impressive 289.15% year-to-date price total return. This recent surge aligns with the timing of Director Eric R. Ball’s stock sales, suggesting he may be capitalizing on the stock’s upward trajectory.
Despite the positive market sentiment, InvestingPro Tips highlight that SoundHound AI is not currently profitable and analysts do not anticipate profitability this year. This context adds importance to the company’s revenue growth, which stands at 76.05% over the last twelve months as of Q3 2024. The company’s market capitalization of $3.05 billion, coupled with its revenue of $67.3 million for the same period, indicates that the stock is trading at a high revenue valuation multiple.
It’s worth noting that while the stock has shown volatility, it also demonstrates liquidity strength, with liquid assets exceeding short-term obligations. This financial cushion could provide some stability as the company pursues growth opportunities.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for SoundHound AI, providing deeper insights into the company’s financial health and market position.
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