TLDR
- SoundHound AI stock traded up 1% on Tuesday, closing at $9.94 with analysts setting a consensus “Moderate Buy” rating and average price target of $16.07
- Five Guys extended its AI voice ordering partnership with SoundHound after processing over one million customer interactions across hundreds of locations
- The company beat Q3 earnings expectations with revenue of $42.05M (versus $40.48M expected) and EPS of -$0.03 (versus -$0.09 expected), showing 67.6% year-over-year revenue growth
- Insiders sold 462,265 shares worth approximately $5.2M over three months, including sales by COO and CTO, while insiders hold 9.17% and institutions own 19.28% of shares
- SoundHound’s AI voice technology now powers over 10,000 locations across various industries, with the system answering 100% of incoming phone orders
SoundHound AI shares climbed 1% on Tuesday, reaching $9.94 as the company announced an expanded partnership with Five Guys. The stock traded as high as $10.00 during the session.
Trading volume came in at 22.6 million shares, down 16% from the average daily volume of 27.1 million shares. The company now holds a market cap of $4.18 billion with a beta of 2.65.
Five Guys Partnership Extension
Five Guys renewed and expanded its agreement with SoundHound after processing over one million customer interactions through the AI voice ordering system. The burger chain has already deployed the technology across hundreds of locations.
Under the renewed deal, Five Guys will offer franchisees additional implementation options. The AI system handles 100% of incoming phone orders, including during rush periods.
“We’re always looking for ways to innovate and make the guest experience as smooth and convenient as possible,” said Zerrick Pearson, Five Guys CIO. Staff can now focus on in-store service and food prep instead of answering phones.
The voice AI understands natural speech and is trained on Five Guys’ specific menu. It answers questions about menu items, promotions, hours, allergens, and common customer inquiries.
SoundHound’s technology now operates at more than 10,000 locations across different industries. James Hom, Chief Product Officer at SoundHound AI, called Five Guys a “forward-thinking partner that continues to raise the bar on what the ordering experience can be.”
Recent Financial Performance
SoundHound beat earnings expectations in its most recent quarter. The company reported a loss of $0.03 per share versus analyst estimates of -$0.09.
Revenue hit $42.05 million, topping the $40.48 million consensus. That represents 67.6% growth compared to the same quarter last year.
The company maintains a negative net margin of 211.16% and a negative return on equity of 93.64%. Analysts forecast an EPS of about -$0.38 for the current fiscal year.
The stock trades below both its 50-day moving average of $11.24 and 200-day moving average of $13.52.
Analyst Coverage and Insider Activity
Wall Street analysts show mixed views on the stock. One analyst gives it a Strong Buy rating, five assign Buy ratings, two rate it Hold, and two give Sell ratings.
The consensus lands at “Moderate Buy” with an average price target of $16.07. DA Davidson set a $14 target in early January. Cantor Fitzgerald upgraded shares from neutral to overweight with a $15 target in mid-December.
Piper Sandler cut its price target from $15 to $11 and maintains a neutral rating. LADENBURG THALM upgraded the stock to strong-buy in late December.
Company insiders sold 462,265 shares worth approximately $5.2 million over the past three months. COO Michael Zagorsek sold 73,406 shares at $11.28 in late December. CTO Timothy Stonehocker sold 29,676 shares at $12.00 in early January.
Corporate insiders currently own 9.17% of shares. Institutional investors hold 19.28% of the company’s stock.
Several institutional investors adjusted their positions recently. Northwestern Mutual Wealth Management increased its holdings by 83.1% in the second quarter. Advisors Asset Management raised its stake by 68.4% during the same period.
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