Kevan Mehajer, CEO of the company SoundHound AI (NASDAQ:), recently executed a series of stock sales totaling approximately $5.6 million. These transactions come as the company's stock trades near its 52-week high of $24.98, having generated an impressive return of more than 1,000% year-to-date. On December 20, Mehajer sold 121,194 shares at an average price of $20.30 per share, making about $2.46 million. This transaction was undertaken to satisfy tax withholding obligations related to the vesting of restricted stock units InvestingPro According to the analysis, SoundHound AI's market cap now stands at $7.48 billion, with the stock showing significant price fluctuations.
Additionally, on December 24, Al-Muhajir sold a total of 156,288 shares in three separate trades. The shares were sold at prices ranging from $19.46 to $21.07 per share, for a total of approximately $3.16 million. These sales were made under a trading plan previously scheduled for August 2024.
Following these transactions, Mehajer retains direct ownership of 2,021,666 shares in SoundHound AI.
In other recent news, SoundHound AI saw positive revisions from HC Wainwright and Wedbush, with both companies raising their price targets for the company to $26 and $22, respectively, while maintaining Buy and Outperform ratings. The upgrades come on the heels of SoundHound AI's impressive third-quarter 2024 results, which saw revenue of $25.1 million, exceeding the expected $22.6 million. The company attributes this success to organic demand growth and contributions from recent mergers and acquisitions.
Looking ahead, SoundHound AI has revised its revenue forecasts for the fourth quarter of 2024 and all of 2025, anticipating revenues to range between $155.0 million and $175.0 million. Additionally, SoundHound AI's partnership with Apivia Courtage has shown significant strides, with SoundHound's Amelia AI Agents deployed to manage more than 100,000 customer service calls, reducing direct customer inquiries for Apivia Courtage by approximately 20%.
On the other hand, despite the company's strong financial health and promising outlook, SoundHound AI stock has seen a decline recently. However, analysts from HC Wainwright and Wedbush believe that the company's strong performance, coupled with continued demand for AI companies, should attract investor interest and contribute to an upward trajectory in the company's stock price.
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