SoundHound AI Director Eric Ball Sells $809,000 in Investing.com Stock

Eric R. Ball (NYSE:), a director at SoundHound AI Inc. (NASDAQ:) reported the sale of 100,000 shares of Class A common stock in two transactions. The sales, which occurred on November 22 and 25, 2024, were conducted at prices between $8.0345 and $8.4228 per share, for a total value of approximately $809,491.

The first transaction involved the sale of 50,000 shares at $8.00 per share, equivalent to $400,000. The second transaction involved 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, some of which are held in a trust for which he is joint trustee. The sales were conducted pursuant to a predetermined trading plan pursuant to Rule 10b5-1, which was amended in June 2024.

In other recent news, SoundHound AI, an artificial voice intelligence company, reported a significant increase in revenue for the third quarter of 2024 to $25.1 million, surpassing the $22.6 million forecast. This success is largely due to organic demand growth and the contribution of recent mergers and acquisitions. In response to increased business demand, SoundHound AI management has revised its revenue forecasts upward for the fourth quarter of 2024 and full year 2025, anticipating revenue between $155.0 million and $175.0 million.

HC Wainwright responded to these positive results by increasing its price target on SoundHound AI shares to $8.00 while maintaining a Buy rating. The company’s solid financial position, with $135.6 million in cash and minimal debt, provides flexibility for future growth initiatives or potential mergers and acquisitions.

In addition to financial growth, SoundHound AI has reported significant progress in its partnership with Apivia Courtage, a French wholesale broker. The collaboration deployed SoundHound’s Amelia AI Agents to handle customer service calls, managing over 100,000 calls and reducing the volume of direct customer inquiries by nearly 20%. The implementation of Amelia AI Agents has enabled Apivia Courtage to redeploy its human workforce to more complex tasks and client relationships. These are just some of the recent developments at SoundHound AI.

Investing Pro Insights

SoundHound AI, Inc. (NASDAQ:SOUN) is witnessing significant market momentum as evidenced by its strong performance across various time periods. According to InvestingPro’s data, the company has delivered a remarkable 33.28% return in the past week alone and an impressive year-to-date total price return of 289.15%. This recent rise is consistent with the timing of director Eric R. Ball’s share sales, suggesting he may be benefiting from the stock’s upward trend.

Despite the positive market sentiment, InvestingPro Tips emphasizes that SoundHound AI is not currently profitable and analysts do not expect profitability this year. In this context, the company’s sales growth becomes more important, which stands at 76.05% in the last twelve months (as of Q3 2024). The company’s market cap of $3.05 billion coupled with its revenue of $67.3 million during the same period shows that the stock is successfully trading at a high revenue valuation multiple.

It is worth noting that while the stock has shown volatility, it also exhibits liquidity strength, with liquid assets exceeding short-term obligations. This financial cushion could provide some stability as the company pursues growth opportunities.

For investors who want a more comprehensive analysis, InvestingPro offers 14 additional SoundHound AI tips that provide deeper insights into the company’s financial health and market position.

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