SoundHound AI (NASDAQ:SOUN) Shares Gap Up - Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $9.58, but opened at $10.12. SoundHound AI shares last traded at $10.63, with a volume of 10,172,396 shares traded.

Wall Street Analysts Forecast Growth

SOUN has been the topic of a number of analyst reports. DA Davidson cut their price target on SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. Wedbush dropped their price objective on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating on the stock in a report on Friday, May 9th. Piper Sandler assumed coverage on SoundHound AI in a research note on Tuesday. They set an "overweight" rating and a $12.00 target price for the company. Cantor Fitzgerald raised SoundHound AI to a "hold" rating in a report on Monday, February 24th. Finally, HC Wainwright cut their price objective on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a report on Monday, May 12th. Four investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $10.50.

SoundHound AI Stock Performance

The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The firm has a 50-day simple moving average of $9.15 and a 200 day simple moving average of $11.75. The company has a market cap of $4.06 billion, a price-to-earnings ratio of -28.06 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, May 8th. The company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.09) by $0.03. The business had revenue of $29.13 million for the quarter, compared to analysts' expectations of $30.38 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The company's quarterly revenue was up 151.2% on a year-over-year basis. During the same period in the previous year, the company posted ($0.07) EPS. On average, sell-side analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Timothy Stonehocker sold 44,157 shares of the business's stock in a transaction that occurred on Wednesday, May 14th. The stock was sold at an average price of $12.00, for a total value of $529,884.00. Following the transaction, the chief technology officer now owns 723,009 shares of the company's stock, valued at approximately $8,676,108. The trade was a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider James Ming Hom sold 28,388 shares of the stock in a transaction on Thursday, March 20th. The stock was sold at an average price of $9.90, for a total value of $281,041.20. Following the sale, the insider now directly owns 689,652 shares of the company's stock, valued at approximately $6,827,554.80. This represents a 3.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 548,537 shares of company stock valued at $5,567,760. Insiders own 12.28% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently bought and sold shares of the company. Rhumbline Advisers lifted its stake in shares of SoundHound AI by 8.9% in the 1st quarter. Rhumbline Advisers now owns 457,107 shares of the company's stock worth $3,712,000 after acquiring an additional 37,431 shares during the period. Strs Ohio purchased a new position in shares of SoundHound AI in the 1st quarter valued at about $391,000. Wealth Management Associates Inc. lifted its position in shares of SoundHound AI by 6.9% during the 1st quarter. Wealth Management Associates Inc. now owns 115,169 shares of the company's stock valued at $935,000 after acquiring an additional 7,445 shares during the period. Belpointe Asset Management LLC purchased a new stake in shares of SoundHound AI during the 1st quarter worth approximately $85,000. Finally, Intech Investment Management LLC increased its stake in SoundHound AI by 135.4% in the 1st quarter. Intech Investment Management LLC now owns 253,089 shares of the company's stock valued at $2,055,000 after purchasing an additional 145,557 shares in the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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.