Charles Schwab Investment Management Inc. Raises Position in SoundHound AI, Inc. $SOUN

Key Points

• Charles Schwab Investment Management Inc. increased its stake in SoundHound AI, Inc. by 4.5% during Q1, holding approximately 2.84 million shares valued at $23.12 million.
• SoundHound AI reported a significant year-over-year revenue increase of 216.3%, despite missing earnings expectations with an EPS of ($0.19).
• Institutional investors collectively own 19.28% of SoundHound AI, while corporate insiders have sold 913,317 shares valued at over $8.67 million in the last 90 days.

Charles Schwab Investment Management Inc. increased its holdings in SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) by 4.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 2,847,261 shares of the company's stock after purchasing an additional 121,568 shares during the quarter. Charles Schwab Investment Management Inc. owned approximately 0.71% of SoundHound AI worth $23,120,000 at the end of the most recent reporting period.

Other institutional investors have also bought and sold shares of the company. Orion Capital Management LLC bought a new stake in SoundHound AI during the fourth quarter valued at $30,000. Golden State Wealth Management LLC boosted its position in SoundHound AI by 100.0% during the first quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company's stock valued at $34,000 after acquiring an additional 2,115 shares during the last quarter. Fourth Dimension Wealth LLC bought a new stake in SoundHound AI during the fourth quarter valued at $88,000. Sunbelt Securities Inc. boosted its position in SoundHound AI by 153.1% during the fourth quarter. Sunbelt Securities Inc. now owns 4,555 shares of the company's stock valued at $90,000 after acquiring an additional 2,755 shares during the last quarter. Finally, Russell Investments Group Ltd. boosted its position in SoundHound AI by 16.4% during the fourth quarter. Russell Investments Group Ltd. now owns 6,598 shares of the company's stock valued at $131,000 after acquiring an additional 929 shares during the last quarter. Institutional investors own 19.28% of the company's stock.

SoundHound AI Price Performance

Shares of SOUN stock traded up $0.33 on Friday, reaching $12.56. 50,614,781 shares of the company were exchanged, compared to its average volume of 50,458,144. SoundHound AI, Inc. has a one year low of $4.32 and a one year high of $24.98. The company has a market cap of $5.05 billion, a price-to-earnings ratio of -19.94 and a beta of 2.57. The company has a 50-day moving average of $11.72 and a 200-day moving average of $10.51.

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

Insider Activity at SoundHound AI

In related news, CTO Timothy Stonehocker sold 2,981 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $9.68, for a total value of $28,856.08. Following the completion of the transaction, the chief technology officer directly owned 716,866 shares of the company's stock, valued at approximately $6,939,262.88. This trade represents a 0.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Nitesh Sharan sold 111,111 shares of the firm's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the completion of the transaction, the chief financial officer directly owned 1,442,900 shares of the company's stock, valued at approximately $13,505,544. This trade represents a 7.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 913,317 shares of company stock worth $8,679,813 over the last 90 days. Corporate insiders own 9.17% of the company's stock.

Analyst Ratings Changes

A number of brokerages have commented on SOUN. HC Wainwright cut 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. Northland Securities raised shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target on the stock in a research report on Friday, August 8th. Wall Street Zen cut shares of SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and upped their price objective for the company from $9.00 to $16.00 in a 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 report on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.36.

SoundHound AI Profile

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.