Geode Capital Management LLC Purchases 273,097 Shares of SoundHound AI, Inc. $SOUN

Key Points

• Geode Capital Management increased its SoundHound AI stake by 3.1% in Q4, buying 273,097 shares and bringing its total holding to 9,180,321 shares worth about $91.5 million.
• SoundHound AI’s latest quarter showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a loss of $0.06 per share, missing analyst estimates by $0.01.
• Analysts remain cautiously upbeat overall, with the stock carrying a Moderate Buy consensus and an average price target of $14.93, while some insiders have recently sold shares.

Geode Capital Management LLC increased its position in SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) by 3.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 9,180,321 shares of the company's stock after purchasing an additional 273,097 shares during the period. Geode Capital Management LLC owned approximately 2.19% of SoundHound AI worth $91,543,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of SOUN. Northwestern Mutual Wealth Management Co. lifted its stake in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after acquiring an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC lifted its stake in SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock valued at $26,000 after acquiring an additional 1,544 shares in the last quarter. Danske Bank A S bought a new position in SoundHound AI during the 3rd quarter valued at $26,000. Parallel Advisors LLC lifted its stake in SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock valued at $52,000 after acquiring an additional 960 shares in the last quarter. Finally, Spire Wealth Management lifted its stake in SoundHound AI by 43.7% during the 4th quarter. Spire Wealth Management now owns 5,472 shares of the company's stock valued at $55,000 after acquiring an additional 1,664 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Price Performance

NASDAQ SOUN opened at $7.39 on Friday. The stock has a market capitalization of $3.20 billion, a price-to-earnings ratio of -15.72 and a beta of 2.56. SoundHound AI, Inc. has a one year low of $5.83 and a one year high of $22.17. The business's fifty day moving average is $7.84 and its 200-day moving average is $9.09.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The business had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company's revenue for the quarter was up 51.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.06) earnings per share. Research analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Zacks Research upgraded 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 SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. DA Davidson restated a "buy" rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Finally, Piper Sandler reiterated a "neutral" rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $14.93.

Insider Activity at SoundHound AI

In related news, COO Michael Zagorsek sold 52,968 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the completion of the sale, the chief operating officer owned 1,734,491 shares of the company's stock, valued at approximately $11,777,193.89. This trade represents a 2.96% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Majid Emami sold 31,019 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the sale, the senior vice president directly owned 501,826 shares of the company's stock, valued at approximately $3,407,398.54. This trade represents a 5.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is owned by company insiders.

About SoundHound AI

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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