Charles Schwab Investment Management Inc. Boosts Stock Holdings in SoundHound AI, Inc. $SOUN

Key Points

• Charles Schwab Investment Management increased its SoundHound AI stake by 2.5% in the fourth quarter, bringing its holdings to 3.36 million shares worth about $33.5 million.
• Analyst sentiment remains mixed but constructive: SoundHound AI carries a Moderate Buy consensus with an average price target of $14.93, though some firms have recently trimmed targets or downgraded the stock.
• Insiders have been selling shares, including CFO Nitesh Sharan and COO Michael Zagorsek, even as the company reported 51.7% year-over-year revenue growth in its latest quarter despite missing EPS estimates.

Charles Schwab Investment Management Inc. boosted its stake in shares of SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) by 2.5% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,364,998 shares of the company's stock after purchasing an additional 82,428 shares during the period. Charles Schwab Investment Management Inc. owned approximately 0.80% of SoundHound AI worth $33,549,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Danske Bank A S purchased a new position in SoundHound AI during the third quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. raised its stake in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC raised its stake in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after purchasing an additional 1,544 shares during the period. Parallel Advisors LLC raised its stake in SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after purchasing an additional 960 shares during the period. Finally, Bfsg LLC raised its stake in SoundHound AI by 53.2% during the third quarter. Bfsg LLC now owns 3,270 shares of the company's stock worth $53,000 after purchasing an additional 1,135 shares during the period. Hedge funds and other institutional investors own 19.28% of the company's stock.

Analysts Set New Price Targets

A number of research firms have weighed in on SOUN. Zacks Research raised shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research report on Monday, March 2nd. Piper Sandler reissued a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. Finally, DA Davidson reissued a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, SoundHound AI currently has an average rating of "Moderate Buy" and a consensus target price of $14.93.

Insider Buying and Selling at SoundHound AI

In related news, CFO Nitesh Sharan sold 44,027 shares of the firm's stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the sale, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at approximately $11,279,011.59. This trade represents a 2.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Michael Zagorsek sold 52,968 shares of the firm's stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $359,652.72. Following the sale, the chief operating officer directly owned 1,734,491 shares of the company's stock, valued at approximately $11,777,193.89. The trade was a 2.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is currently owned by insiders.

SoundHound AI Stock Down 1.3%

SoundHound AI stock opened at $8.41 on Friday. SoundHound AI, Inc. has a 52-week low of $5.83 and a 52-week high of $22.17. The firm has a fifty day moving average of $7.56 and a 200-day moving average of $9.83. The firm has a market capitalization of $3.56 billion, a P/E ratio of -17.89 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The business had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.SoundHound AI's revenue was up 51.7% on a year-over-year basis. During the same period in the previous year, the company earned ($0.06) EPS. On average, research analysts expect that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

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