SoundHound AI (NASDAQ:SOUN) Shares Up 1.1% - What's Next?

Key Points

• SoundHound AI shares rose 1.1% in mid-day trading, with the stock trading between $6.40 and $6.55 on lighter-than-average volume.
• Wall Street sentiment remains mixed but still leans positive: the stock has a consensus “Moderate Buy” rating and an average target price of $14.93, despite some recent target cuts and one sell rating.
• The company reported 51.7% revenue growth in its latest quarter, but it still posted a loss and missed EPS expectations; insiders also recently sold shares, while institutional ownership remains significant at 19.28%.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) rose 1.1% during mid-day trading on Tuesday . The company traded as high as $6.55 and last traded at $6.47. 19,055,559 shares changed hands during trading, a decline of 30% from the average daily volume of 27,354,564 shares. The stock had previously closed at $6.40.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on SOUN. HC Wainwright decreased their price target on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. DA Davidson reiterated a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Stock Performance

The company has a market capitalization of $2.80 billion, a price-to-earnings ratio of -13.77 and a beta of 2.56. The business's 50-day simple moving average is $7.88 and its 200-day simple moving average is $8.50.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The business had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The firm's revenue for the quarter was up 51.7% compared to the same quarter last year. During the same period last year, the business posted ($0.06) EPS. On average, analysts forecast that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the sale, the chief executive officer owned 1,947,237 shares of the company's stock, valued at approximately $14,526,388.02. The trade was a 6.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the sale, the insider owned 743,521 shares of the company's stock, valued at $5,546,666.66. The trade was a 3.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after buying an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC increased its stake 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 last quarter. Morgan Stanley increased its stake in shares of SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock valued at $89,606,000 after acquiring an additional 2,917,280 shares during the last quarter. State Street Corp raised its position in shares of SoundHound AI by 0.9% in the 4th quarter. State Street Corp now owns 8,691,235 shares of the company's stock valued at $86,652,000 after acquiring an additional 80,908 shares during the period. Finally, UBS Group AG raised its position in shares of SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after acquiring an additional 2,676,707 shares during the period. 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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