SoundHound AI (NASDAQ:SOUN) Shares Up 17.5% After Strong Earnings

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price was up 17.5% during trading on Friday following a better than expected earnings announcement. The stock traded as high as $5.97 and last traded at $5.58. Approximately 56,047,919 shares traded hands during trading, an increase of 12% from the average daily volume of 49,897,148 shares. The stock had previously closed at $4.75.

The company reported ($0.07) EPS for the quarter, beating analysts' consensus estimates of ($0.09) by $0.02. The firm had revenue of $11.59 million for the quarter, compared to analyst estimates of $10.10 million. SoundHound AI had a negative return on equity of 1,955.68% and a negative net margin of 188.57%. SoundHound AI's revenue for the quarter was up 72.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.12) earnings per share.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on SOUN shares. DA Davidson upped their price objective on SoundHound AI from $7.50 to $9.50 and gave the stock a "buy" rating in a research report on Friday, March 15th. Wedbush restated an "outperform" rating and issued a $9.00 price objective on shares of SoundHound AI in a research report on Friday. Northland Securities restated a "market perform" rating on shares of SoundHound AI in a research report on Wednesday, February 28th. LADENBURG THALM/SH SH began coverage on SoundHound AI in a research report on Tuesday, January 30th. They set a "buy" rating and a $4.00 target price on the stock. Finally, HC Wainwright increased their target price on SoundHound AI from $5.00 to $7.00 and gave the company a "buy" rating in a research report on Monday, March 4th. Two research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $6.88.

Insiders Place Their Bets

In other SoundHound AI news, CEO Keyvan Mohajer sold 107,927 shares of the firm's stock in a transaction on Thursday, February 15th. The stock was sold at an average price of $3.70, for a total value of $399,329.90. Following the completion of the sale, the chief executive officer now directly owns 1,218,712 shares of the company's stock, valued at approximately $4,509,234.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, CEO Keyvan Mohajer sold 107,927 shares of the firm's stock in a transaction dated Thursday, February 15th. The stock was sold at an average price of $3.70, for a total transaction of $399,329.90. Following the completion of the transaction, the chief executive officer now directly owns 1,218,712 shares in the company, valued at approximately $4,509,234.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Timothy Stonehocker sold 5,276 shares of SoundHound AI stock in a transaction dated Thursday, March 21st. The shares were sold at an average price of $7.70, for a total value of $40,625.20. Following the completion of the transaction, the chief technology officer now owns 982,584 shares of the company's stock, valued at approximately $7,565,896.80. The disclosure for this sale can be found here. Insiders sold 405,057 shares of company stock valued at $2,587,804 in the last three months. 21.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Independent Advisor Alliance acquired a new position in shares of SoundHound AI in the fourth quarter valued at approximately $28,000. IAM Advisory LLC acquired a new position in shares of SoundHound AI in the fourth quarter valued at approximately $29,000. Hexagon Capital Partners LLC acquired a new position in shares of SoundHound AI in the first quarter valued at approximately $29,000. HighPoint Advisor Group LLC acquired a new position in shares of SoundHound AI in the fourth quarter valued at approximately $37,000. Finally, DecisionPoint Financial LLC purchased a new stake in SoundHound AI during the first quarter worth $40,000. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Stock Performance

The stock has a 50-day simple moving average of $5.41 and a 200 day simple moving average of $3.39. The company has a debt-to-equity ratio of 6.03, a current ratio of 4.69 and a quick ratio of 4.69. The company has a market capitalization of $1.57 billion, a PE ratio of -14.08 and a beta of 2.87.

SoundHound AI Company 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.