SoundHound AI (NASDAQ:SOUN) Trading Up 4% - Still a Buy?

Key Points

• SoundHound AI shares rose 4% to about $6.17, but remained below their 50-day and 200-day moving averages of $6.68 and $7.20, respectively.
• Analyst sentiment is mixed but leans positive: the stock has a “Moderate Buy” consensus rating and a $13.00 average price target, despite recent target cuts and sell or neutral ratings from some analysts.
• The company’s latest quarterly results beat expectations, with revenue up 45% year over year to $61.9 million and an EPS loss of $0.02 versus the expected $0.13 loss; however, SoundHound remains unprofitable, with a negative net margin of 67.45%.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shot up 4% on Monday . The company traded as high as $6.22 and last traded at $6.17. Approximately 17,649,265 shares changed hands during mid-day trading, a decline of 37% from the average session volume of 28,187,828 shares. The stock had previously closed at $5.93.

Analyst Ratings Changes

Several analysts have issued reports on SOUN shares. Wall Street Zen raised SoundHound AI from a "strong sell" rating to a "sell" rating in a research note on Sunday, September 13th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research report on Friday, September 11th. DA Davidson decreased their price objective on 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 dropped their target price on SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $13.00.

SoundHound AI Stock Up 4.0%

The company's fifty day moving average is $6.68 and its 200 day moving average is $7.20. The firm has a market cap of $2.74 billion, a price-to-earnings ratio of -16.24 and a beta of 2.66.

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

Insider Buying and Selling

In related news, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the sale, the chief operating officer owned 2,600,231 shares of the company's stock, valued at approximately $16,459,462.23. The trade was a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the company's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the senior vice president owned 834,253 shares in the company, valued at $5,280,821.49. The trade was a 4.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 287,206 shares of company stock worth $1,819,115 in the last three months. Insiders own 8.84% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several large investors have recently made changes to their positions in the stock. Geode Capital Management LLC grew its position 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 acquiring an additional 273,097 shares during the period. Swiss National Bank lifted its holdings in SoundHound AI by 3.7% during the 1st quarter. Swiss National Bank now owns 767,100 shares of the company's stock valued at $5,270,000 after purchasing an additional 27,300 shares during the last quarter. California State Teachers Retirement System boosted its position in SoundHound AI by 25.0% during the first 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. Virtu Financial LLC increased its holdings in shares of SoundHound AI by 43.9% in the fourth quarter. Virtu Financial LLC now owns 219,773 shares of the company's stock valued at $2,191,000 after purchasing an additional 67,088 shares during the last quarter. Finally, Rockefeller Capital Management L.P. increased its holdings 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 purchasing an additional 6,096 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

About SoundHound AI

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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