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

Key Points

• SoundHound AI shares experienced a significant increase, gapping up from a prior close of $10.72 to open at $13.16, with current trading at $13.69.
• Analyst ratings vary, with Northland Securities upgrading the stock to "outperform" with a target price of $14.50, while other analysts have set lower price targets ranging from $10.00 to $18.00.
• The company's recent earnings report revealed revenue growth of 216.3% year-over-year, but it reported a loss of ($0.19) per share, missing estimates.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price gapped up prior to trading on Friday . The stock had previously closed at $10.72, but opened at $13.16. SoundHound AI shares last traded at $13.69, with a volume of 82,996,046 shares.

Analyst Upgrades and Downgrades

SOUN has been the topic of several analyst reports. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price on the stock in a research report on Friday. Piper Sandler reaffirmed a "neutral" rating and set a $12.00 price objective on shares of SoundHound AI in a research note on Monday, July 14th. HC Wainwright reduced their target price on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research note on Monday, May 12th. DA Davidson cut their price target on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Finally, Wedbush decreased their price objective on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. Four research analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $11.31.

SoundHound AI Trading Up 28.6%

The company's 50 day moving average is $10.69 and its 200 day moving average is $10.56. The company has a market cap of $5.54 billion, a PE ratio of -25.04 and a beta of 2.57.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates 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 return on equity of 68.55% and a negative net margin of 184.34%. SoundHound AI's revenue was up 216.3% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.11) earnings per share. Analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insiders Place Their Bets

In related news, Director Diana Sroka sold 2,800 shares of SoundHound AI stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $9.94, for a total value of $27,832.00. Following the completion of the sale, the director directly owned 153,949 shares in the company, valued at $1,530,253.06. The trade was a 1.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider James Ming Hom sold 79,530 shares of the company's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $744,400.80. Following the completion of the sale, the insider directly owned 637,560 shares of the company's stock, valued at approximately $5,967,561.60. This trade represents a 11.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 961,289 shares of company stock worth $9,247,847. 9.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 9.5% during 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 last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of SoundHound AI by 84.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock valued at $40,390,000 after buying an additional 2,274,105 shares during the last quarter. Rockefeller Capital Management L.P. purchased a new position in shares of SoundHound AI in the 4th quarter worth approximately $41,595,000. Invesco Ltd. raised its stake in shares of SoundHound AI by 1,386.2% during the 4th quarter. Invesco Ltd. now owns 1,382,371 shares of the company's stock worth $27,426,000 after acquiring an additional 1,289,360 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its position in SoundHound AI by 69.8% during the first 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 during the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

About SoundHound AI

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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