Shares of Veritone, Inc. (NASDAQ:VERI) have achieved a consensus rating of “Moderate Buy” from seven research firms monitoring the company, according to Marketbeat.com. Analysts have provided a mixed review of the stock, with one recommending a sell, one a hold, four a buy, and one a strong buy. The average 12-month price target among these analysts stands at $10.00.
Recent analyst activity reflects varying outlooks for Veritone. HC Wainwright increased its price target from $6.00 to $9.00 and maintained a buy rating as of October 20, 2023. In contrast, Weiss Ratings reiterated a “sell (e+)” rating on October 8, 2023. D. Boral Capital raised its rating to “strong buy” on September 2, 2023, and subsequently issued a target price of $23.00 on December 9, 2023. Meanwhile, Wall Street Zen upgraded the stock from sell to hold on October 26, 2023.
Quarterly Earnings and Market Response
Veritone’s stock price recently experienced a decline of 6.0% following the announcement of its quarterly earnings report on November 6, 2023. The company reported an earnings per share (EPS) of ($0.09), which surpassed analysts’ expectations of ($0.11) by $0.02. Revenue for the quarter reached $29.12 million, exceeding forecasts of $28.69 million. Despite this positive revenue indication, Veritone recorded a negative net margin of 42.60% and a concerning negative return on equity of 361.72%.
The market’s initial reaction to the earnings report has raised concerns among investors about the company’s profitability and overall financial health.
Institutional Investments in Veritone
Institutional investors have shown considerable interest in Veritone, with several hedge funds adjusting their holdings in the company recently. Ground Swell Capital LLC acquired a new stake in Veritone during the second quarter, valued at approximately $27,000. Virtu Financial LLC and Franklin Resources Inc. similarly increased their positions, investing around $30,000 and $50,000, respectively, in the first and third quarters of 2023. Additionally, Sherbrooke Park Advisers LLC and Jefferies Financial Group Inc. made new investments valued at $80,000 and $82,000, respectively, in the third quarter.
Overall, institutional investors hold 39.18% of Veritone’s stock, reflecting a significant level of confidence in the company’s future prospects despite recent challenges.
Veritone, Inc. operates within the artificial intelligence (AI) sector, providing computing solutions across multiple regions, including the United States, the United Kingdom, France, Australia, Israel, and India. The company is known for its aiWARE platform, an AI operating system designed to replicate human cognitive functions through machine learning algorithms. This technology enables users to convert unstructured data into structured formats and derive actionable insights to enhance business processes.
As analyst sentiments continue to shift, investors will be closely monitoring Veritone’s performance and strategic developments in the coming months.
