SoundHound AI (NASDAQ:SOUN) Shares Gap Up - Here's What Happened

Key Points

• Shares of SoundHound AI gapped up, opening at $8.85 versus a $8.32 prior close and last trading near $8.55 on roughly 15.86 million shares; the company has a market cap of about $3.39B with a 50‑day SMA of $7.43 and 200‑day SMA of $11.01.
• Analysts carry a consensus rating of Moderate Buy with an average price target of $14.93, though individual views vary (e.g., HC Wainwright cut its target to $20, DA Davidson set $14, and Weiss Ratings remains a sell).
• For the latest quarter SoundHound reported EPS of -$0.02 (meeting estimates) and revenue of $55.06M (beat expectations and up 59.4% YoY), but the business remains unprofitable with negative margins and an expected FY EPS of -0.34; insiders have sold roughly 307,973 shares over the past three months.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $8.32, but opened at $8.85. SoundHound AI shares last traded at $8.5520, with a volume of 15,863,618 shares changing hands.

Analyst Ratings Changes

Several analysts have commented on the stock. DA Davidson set a $14.00 price target on shares of SoundHound AI in a research note on Thursday, January 8th. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a report on Monday, March 2nd. Zacks Research raised shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of SoundHound AI in a report on Friday, January 9th. Finally, Piper Sandler reissued a "neutral" rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, SoundHound AI presently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Performance

The firm's fifty day simple moving average is $7.43 and its 200 day simple moving average is $11.01. The firm has a market cap of $3.39 billion, a P/E ratio of -160.85 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.02). The firm had revenue of $55.06 million for the quarter, compared to analysts' expectations of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business's revenue was up 59.4% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.05) EPS. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.34 earnings per share for the current year.

Insiders Place Their Bets

In other news, SVP Majid Emami sold 31,019 shares of the firm's 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 completion of the sale, the senior vice president directly owned 501,826 shares of the company's stock, valued at $3,407,398.54. This trade represents a 5.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Nitesh Sharan sold 44,027 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the completion of the sale, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at $11,279,011.59. The trade was a 2.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 307,973 shares of company stock worth $2,091,110. 9.17% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its position in SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company's stock worth $698,798,000 after purchasing an additional 6,132,648 shares during the period. Morgan Stanley raised its position in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the period. UBS Group AG raised its position in SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company's stock worth $61,059,000 after purchasing an additional 2,676,707 shares during the period. Voloridge Investment Management LLC raised its position in SoundHound AI by 2,259.7% in the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company's stock worth $21,929,000 after purchasing an additional 2,106,298 shares during the period. Finally, Jump Financial LLC purchased a new stake in SoundHound AI in the 3rd quarter worth about $21,679,000. Hedge funds and other institutional investors own 19.28% of the company's stock.

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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