SoundHound AI (NASDAQ:SOUN) Trading 3.4% Higher - Should You Buy?

Key Points

• SoundHound AI shares rose 3.4% to $6.47 in mid-day trading, with volume near its average. The company has a $2.87 billion market capitalization, while its 50-day and 200-day moving averages stand at $6.74 and $7.29, respectively.
• Analyst views remain mixed: the consensus rating is “Moderate Buy” with a $13.00 price target, although recent analysts cut targets to $10 and $7, and ratings include one sell and two holds.
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.02 per share versus an expected loss of $0.13 and revenue of $61.9 million, up 45% year over year. However, it remains unprofitable, with a negative net margin of 67.45%.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded up 3.4% during mid-day trading on Monday . The company traded as high as $6.65 and last traded at $6.47. 28,450,710 shares traded hands during trading, an increase of 0% from the average session volume of 28,414,217 shares. The stock had previously closed at $6.26.

Analyst Ratings Changes

A number of research analysts have commented on SOUN shares. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research report on Friday. Wall Street Zen upgraded shares of SoundHound AI from a "strong sell" rating to a "sell" rating in a report on Sunday. DA Davidson dropped their target price on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Finally, Piper Sandler decreased their price target on SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $13.00.

SoundHound AI Price Performance

The company has a market capitalization of $2.87 billion, a PE ratio of -17.03 and a beta of 2.66. The stock's 50 day simple moving average is $6.74 and its 200-day simple moving average is $7.29.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.11. The business had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business's revenue for the quarter was up 45.0% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.19) earnings per share. On average, equities analysts predict that SoundHound AI, Inc. will post -0.33 earnings per share for the current year.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently modified their holdings of SOUN. California State Teachers Retirement System increased its holdings in SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after purchasing an additional 87,998 shares during the period. Geode Capital Management LLC boosted its stake in shares of SoundHound AI by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock valued at $91,543,000 after buying an additional 273,097 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in shares of SoundHound AI by 2.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,364,998 shares of the company's stock valued at $33,549,000 after buying an additional 82,428 shares during the period. Havemeyer Place LP acquired a new position in shares of SoundHound AI during the fourth quarter worth about $956,000. Finally, Themes Management Co LLC grew its position in shares of SoundHound AI by 86.5% during the first quarter. Themes Management Co LLC now owns 191,444 shares of the company's stock worth $1,315,000 after buying an additional 88,820 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company's offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.

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