SoundHound AI (NASDAQ:SOUN) Sees Unusually-High Trading Volume on Analyst Upgrade

Key Points

• SoundHound AI's stock was upgraded by LADENBURG THALM/SH SH from a neutral to a buy rating, raising the price target from $9.00 to $16.00, leading to a significant increase in trading volume.
• The stock's last trading price was $15.54, a rise from its previous close of $13.55, with over 42 million shares exchanged during midday trading.
• Recent earnings report showed SoundHound AI missed earnings estimates with a loss of ($0.19) per share but reported a revenue increase of 216.3% year-over-year, reaching $42.68 million.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares saw an uptick in trading volume on Monday after LADENBURG THALM/SH SH upgraded the stock from a neutral rating to a buy rating. LADENBURG THALM/SH SH now has a $16.00 price target on the stock, up from their previous price target of $9.00. 42,787,660 shares changed hands during mid-day trading, an increase of 6% from the previous session's volume of 40,322,266 shares.The stock last traded at $15.54 and had previously closed at $13.55.

A number of other research analysts have also recently weighed in on the company. Wedbush lifted their target price on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a report on Friday. HC Wainwright lowered their target price on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective for the company in a report on Friday. Wall Street Zen downgraded SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday. One research analyst has rated the stock with a sell rating, three have assigned a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $13.36.

Insider Buying and Selling at SoundHound AI

In related news, CEO Keyvan Mohajer sold 254,376 shares of the stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $2,380,959.36. Following the transaction, the chief executive officer owned 1,749,790 shares in the company, valued at approximately $16,378,034.40. This represents a 12.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Majid Emami sold 132,352 shares of SoundHound AI stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $10.04, for a total transaction of $1,328,814.08. Following the sale, the vice president directly owned 537,482 shares in the company, valued at approximately $5,396,319.28. This trade represents a 19.76% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 957,474 shares of company stock valued at $9,209,697. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in shares of SoundHound AI by 9.5% in the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock worth $284,687,000 after purchasing an additional 3,028,281 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of SoundHound AI by 84.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock worth $40,390,000 after acquiring an additional 2,274,105 shares in the last quarter. Rockefeller Capital Management L.P. bought a new stake in shares of SoundHound AI in the 4th quarter worth approximately $41,595,000. Invesco Ltd. lifted its holdings in shares of SoundHound AI by 1,386.2% in the 4th quarter. Invesco Ltd. now owns 1,382,371 shares of the company's stock worth $27,426,000 after purchasing an additional 1,289,360 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its stake in SoundHound AI by 69.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after acquiring an additional 1,085,473 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Stock Performance

The stock has a 50 day moving average price of $10.76 and a 200 day moving average price of $10.45. The company has a market cap of $6.43 billion, a P/E ratio of -25.08 and a beta of 2.57.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The company had revenue of $42.68 million during the quarter, compared to the consensus estimate of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 77.38%. The company's revenue for the quarter was up 216.3% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.11) earnings per share. As a group, equities research analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

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.

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