BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
James Ming Hom, the Chief Product Officer of SoundHound AI , Inc. (NASDAQ:SOUN), recently sold 36,771 shares of Class A Common Stock. The company's stock has seen remarkable performance, surging over 1,000% year-to-date and currently trading near its 52-week high of $24.98. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with notably high price volatility. This transaction, executed on December 20, was valued at approximately $746,605, with shares sold at an average price of $20.30 each.
Following this sale, Hom retains ownership of 718,040 shares. The sale was made to satisfy tax withholding obligations related to the vesting of restricted stock units granted over the past two years.
In other recent news, SoundHound AI has witnessed a series of positive developments. H.C. Wainwright and Wedbush have both upgraded their price targets for the company to $26 and $22, respectively. Their upgrades reflect SoundHound AI's impressive performance in the AI market, coupled with the growing demand for its voice AI solutions. The company has also reported a significant growth in revenue of 89% year-over-year in the third quarter of 2024, reaching $25.1 million.
SoundHound AI has also established partnerships with major restaurant chains Church’s Texas Chicken and Torchy's Tacos, and French wholesale broker Apivia Courtage. The collaboration with Apivia Courtage resulted in the deployment of SoundHound’s Amelia AI Agents, managing over 100,000 customer service calls and reducing Apivia Courtage's direct customer queries by nearly 20%.
SoundHound AI's recent acquisitions are expected to expand its business scope, extending into retail, healthcare, and financial services sectors. Lastly, the company maintains a healthy current ratio of 2.58 and operates with a moderate debt level, though it remains unprofitable with an EBITDA of -$88.4 million in the last twelve months.
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