Victory Capital Management Inc. Acquires 123,623 Shares of SoundHound AI, Inc. (NASDAQ:SOUN)

Key Points

• Victory Capital Management Inc. has significantly increased its stake in SoundHound AI, purchasing an additional 123,623 shares during the first quarter, bringing its total ownership to 163,713 shares valued at approximately $1.33 million.
• Analysts have revised their target prices for SoundHound AI, with estimates ranging from $10.00 to $15.00, indicating a cautious outlook on the stock's performance.
• Despite a year-over-year revenue increase of 151.2% to $29.13 million, SoundHound AI reported negative earnings, raising concerns about its profitability, with a forecasted EPS of -0.38 for the current year.

Victory Capital Management Inc. raised its position in SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) by 308.4% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 163,713 shares of the company's stock after buying an additional 123,623 shares during the quarter. Victory Capital Management Inc.'s holdings in SoundHound AI were worth $1,329,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the company. Geode Capital Management LLC raised its stake in shares of SoundHound AI by 4.4% in the fourth quarter. Geode Capital Management LLC now owns 7,509,496 shares of the company's stock valued at $149,024,000 after buying an additional 315,897 shares during the period. Northern Trust Corp raised its stake in shares of SoundHound AI by 10.0% during the 4th quarter. Northern Trust Corp now owns 2,906,245 shares of the company's stock valued at $57,660,000 after purchasing an additional 264,382 shares during the period. Rockefeller Capital Management L.P. bought a new stake in shares of SoundHound AI during the 4th quarter valued at $41,595,000. Invesco Ltd. raised its stake in shares of SoundHound AI by 1,386.2% during the 4th quarter. Invesco Ltd. now owns 1,382,371 shares of the company's stock valued at $27,426,000 after purchasing an additional 1,289,360 shares during the period. Finally, Bank of New York Mellon Corp raised its stake in shares of SoundHound AI by 5.6% during the 1st quarter. Bank of New York Mellon Corp now owns 919,854 shares of the company's stock valued at $7,469,000 after purchasing an additional 49,011 shares during the period. 19.28% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of analysts recently issued reports on SOUN shares. HC Wainwright decreased their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research note on Monday, May 12th. DA Davidson decreased their price objective on SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. Wedbush reduced their target price on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Finally, Piper Sandler restated a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research report on Monday, July 14th. Five investment analysts have rated the stock with a hold rating and three have given a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $10.50.

SoundHound AI Trading Down 0.6%

Shares of SOUN traded down $0.06 during midday trading on Thursday, reaching $10.33. The stock had a trading volume of 25,139,067 shares, compared to its average volume of 42,841,896. The company's 50-day moving average is $10.65 and its 200 day moving average is $10.66. SoundHound AI, Inc. has a 12-month low of $3.94 and a 12-month high of $24.98. The company has a market capitalization of $4.15 billion, a price-to-earnings ratio of -18.78 and a beta of 2.59.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share for the quarter, beating analysts' consensus estimates of ($0.09) by $0.03. SoundHound AI had a negative return on equity of 68.55% and a negative net margin of 184.34%. The company had revenue of $29.13 million during the quarter, compared to analyst estimates of $30.38 million. During the same quarter in the previous year, the company posted ($0.07) EPS. SoundHound AI's revenue for the quarter was up 151.2% on a year-over-year basis. Research analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In other news, VP Majid Emami sold 60,295 shares of the business's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $10.00, for a total value of $602,950.00. Following the completion of the sale, the vice president owned 477,657 shares of the company's stock, valued at approximately $4,776,570. The trade was a 11.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Diana Sroka sold 2,800 shares of the business's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $9.94, for a total value of $27,832.00. Following the completion of the sale, the director directly owned 153,949 shares of the company's stock, valued at approximately $1,530,253.06. This trade represents a 1.79% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 961,289 shares of company stock worth $9,247,847 in the last 90 days. 9.17% of the stock is currently owned by company insiders.

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.