Investors Buy Large Volume of SoundHound AI Call Options (NASDAQ:SOUN)

Key Points

• Investors bought an unusually large block of call options — 92,140 calls, roughly 50% above average volume — and the stock rose 10.6% to $7.71 on Wednesday.
• SoundHound reported quarterly revenue of $55.06M (vs. $53.88M estimate), up 59.4% year‑over‑year, while EPS was (‑$0.02), meeting expectations.
• Company insiders have been selling recently (CEO Keyvan Mohajer sold 124,510 shares; insiders sold 307,973 shares over 90 days), yet analysts hold a "Moderate Buy" consensus with an average target of $14.93.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) was the target of unusually large options trading on Wednesday. Stock investors acquired 92,140 call options on the stock. This is an increase of approximately 50% compared to the average volume of 61,497 call options.

SoundHound AI Stock Up 10.6%

Shares of SoundHound AI stock traded up $0.74 during trading on Wednesday, reaching $7.71. The company's stock had a trading volume of 22,797,056 shares, compared to its average volume of 25,585,736. SoundHound AI has a 12-month low of $5.83 and a 12-month high of $22.17. The company has a market capitalization of $3.26 billion, a P/E ratio of -154.47 and a beta of 2.71. The business has a 50 day moving average price of $7.45 and a 200-day moving average price of $11.25.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. During the same period in the previous year, the business earned ($0.05) earnings per share. The company's revenue for the quarter was up 59.4% compared to the same quarter last year. Research analysts predict that SoundHound AI will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 124,510 shares of SoundHound AI stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $845,422.90. Following the transaction, the chief executive officer owned 2,073,777 shares of the company's stock, valued at $14,080,945.83. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Majid Emami sold 31,019 shares of SoundHound AI stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the senior vice president directly owned 501,826 shares in the company, valued at approximately $3,407,398.54. This trade represents a 5.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 307,973 shares of company stock valued at $2,091,110 over the last 90 days. 9.17% of the stock is owned by insiders.

Institutional Trading of SoundHound AI

A number of institutional investors have recently modified their holdings of the business. Hsbc Holdings PLC purchased a new stake in shares of SoundHound AI in the fourth quarter valued at approximately $110,000. Rockefeller Capital Management L.P. boosted its stake in shares of SoundHound AI by 3.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 179,327 shares of the company's stock valued at $1,788,000 after buying an additional 6,096 shares in the last quarter. SHP Wealth Management purchased a new stake in SoundHound AI during the fourth quarter worth $27,000. Virtu Financial LLC boosted its position in SoundHound AI by 43.9% during the fourth quarter. Virtu Financial LLC now owns 219,773 shares of the company's stock worth $2,191,000 after purchasing an additional 67,088 shares in the last quarter. Finally, Alpine Woods Capital Investors LLC boosted its position in SoundHound AI by 143.0% during the fourth quarter. Alpine Woods Capital Investors LLC now owns 50,742 shares of the company's stock worth $506,000 after purchasing an additional 29,857 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

SOUN has been the topic of several research analyst reports. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. HC Wainwright cut their price target on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. DA Davidson set a $14.00 target price on SoundHound AI in a report on Thursday, January 8th. Piper Sandler reissued a "neutral" rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of SoundHound AI in a report on Friday, January 9th. One equities research 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 issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $14.93.

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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