First Manhattan CO. LLC. Buys Shares of 121,359 SoundHound AI, Inc. $SOUN

Key Points

• First Manhattan CO. LLC purchased 121,359 shares of SoundHound AI, valued at approximately $985,000, reflecting a significant investment in the company.
• SoundHound AI's revenue increased by 216.3% year-over-year, reporting $42.68 million, although it missed earnings expectations with a reported loss per share of ($0.19).
• Insider trading has seen executives sell a total of 913,317 shares recently, indicating a possible shift in their ownership stakes in the company.

First Manhattan CO. LLC. acquired a new position in shares of SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 121,359 shares of the company's stock, valued at approximately $985,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in SOUN. Vanguard Group Inc. increased its stake in SoundHound AI by 9.5% in the first quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after acquiring an additional 3,028,281 shares during the period. Nuveen LLC bought a new stake in SoundHound AI in the first quarter valued at about $7,406,000. Cubist Systematic Strategies LLC bought a new stake in SoundHound AI in the first quarter valued at about $6,755,000. Driehaus Capital Management LLC bought a new stake in SoundHound AI in the fourth quarter valued at about $16,421,000. Finally, UNICOM Systems Inc. increased its stake in SoundHound AI by 234.0% in the first quarter. UNICOM Systems Inc. now owns 785,000 shares of the company's stock valued at $6,374,000 after acquiring an additional 550,000 shares during the period. Institutional investors own 19.28% of the company's stock.

Insider Transactions at SoundHound AI

In other news, CFO Nitesh Sharan sold 111,111 shares of the firm's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the completion of the sale, the chief financial officer owned 1,442,900 shares in the company, valued at approximately $13,505,544. This trade represents a 7.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Majid Emami sold 60,295 shares of the firm's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $10.00, for a total transaction of $602,950.00. Following the transaction, the vice president directly owned 477,657 shares in the company, valued at approximately $4,776,570. This represents a 11.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 913,317 shares of company stock valued at $8,679,813. 9.17% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. HC Wainwright reduced their price target on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Wedbush upped their target price on shares of SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and upped their target price for the stock from $9.00 to $16.00 in a research report on Monday, August 11th. Finally, Northland Capmk raised shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $13.36.

SoundHound AI Trading Up 7.3%

Shares of SOUN stock traded up $0.97 during trading hours on Friday, hitting $14.26. 95,393,466 shares of the company were exchanged, compared to its average volume of 65,710,336. The business has a 50 day moving average of $12.36 and a two-hundred day moving average of $10.44. SoundHound AI, Inc. has a 52 week low of $4.32 and a 52 week high of $24.98. The company has a market capitalization of $5.81 billion, a PE ratio of -22.63 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The company had revenue of $42.68 million for the quarter, compared to the consensus estimate of $32.88 million. During the same period in the prior year, the company earned ($0.11) EPS. The firm's revenue was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. On average, research analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

About SoundHound AI

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.