SoundHound AI (NASDAQ:SOUN) Shares Up 1.4% - What's Next?

Key Points

• SoundHound AI's shares rose 1.4% during trading on Thursday, reaching a high of $13.38 before closing at $12.92, despite a significant decline in trading volume from its average.
• Analysts have mixed opinions on the stock, with a consensus rating of "Moderate Buy" and varied price targets ranging from $12.00 to $16.00.
• The company reported a quarterly revenue increase of 216.3% year-over-year, with earnings per share (EPS) of ($0.19), missing the consensus estimate, while achieving revenue of $42.68 million compared to expectations of $32.88 million.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price rose 1.4% during trading on Thursday . The company traded as high as $13.38 and last traded at $12.92. Approximately 18,206,142 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 42,212,910 shares. The stock had previously closed at $12.74.

Wall Street Analyst Weigh In

A number of research firms have issued reports on SOUN. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a report on Monday, July 14th. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target for the company in a report on Friday, August 8th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and upped their price target for the stock from $9.00 to $16.00 in a research report on Monday, August 11th. HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. Finally, Wedbush lifted their price objective on shares of SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.36.

SoundHound AI Stock Up 4.3%

The firm has a market cap of $5.42 billion, a price-to-earnings ratio of -21.10 and a beta of 2.58. The company's fifty day moving average is $12.21 and its 200 day moving average is $10.40.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) EPS 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 analyst estimates of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The company's quarterly revenue was up 216.3% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.11) EPS. SoundHound AI has set its FY 2025 guidance at EPS. On average, equities research analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In other SoundHound AI news, CTO Timothy Stonehocker sold 2,981 shares of the company's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $9.68, for a total value of $28,856.08. Following the transaction, the chief technology officer directly owned 716,866 shares of the company's stock, valued at $6,939,262.88. This represents a 0.41% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Diana Sroka sold 2,800 shares of the stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $9.94, for a total value of $27,832.00. Following the sale, the director directly owned 153,949 shares in the company, valued at approximately $1,530,253.06. This trade represents a 1.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 913,317 shares of company stock worth $8,679,813 over the last three months. 9.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of large investors have recently bought and sold shares of SOUN. Vanguard Group Inc. grew its stake in SoundHound AI by 9.5% in the first quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after acquiring an additional 3,028,281 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in SoundHound AI by 84.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock valued at $40,390,000 after purchasing an additional 2,274,105 shares during the last quarter. HRT Financial LP purchased a new stake in shares of SoundHound AI in the second quarter worth approximately $11,914,000. Goldman Sachs Group Inc. lifted its holdings in shares of SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after purchasing an additional 1,085,473 shares in the last quarter. Finally, Nuveen LLC purchased a new position in shares of SoundHound AI during the first quarter valued at approximately $7,406,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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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