SoundHound AI (NASDAQ:SOUN) Stock Price Up 1.8% - Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price shot up 1.8% during trading on Wednesday . The stock traded as high as $10.21 and last traded at $9.96. 10,821,674 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 38,625,646 shares. The stock had previously closed at $9.79.

Wall Street Analyst Weigh In

Several research firms have recently commented on SOUN. Piper Sandler began coverage on SoundHound AI in a research note on Tuesday, May 27th. They issued an "overweight" rating and a $12.00 price objective for the company. HC Wainwright dropped their target price on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. Cantor Fitzgerald raised shares of SoundHound AI to a "hold" rating in a report on Monday, February 24th. DA Davidson dropped their price objective on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a report on Monday, April 14th. Finally, Wedbush dropped their price objective on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a report on Friday, May 9th. Four equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $10.50.

SoundHound AI Trading Down 2.8%

The firm has a market capitalization of $3.80 billion, a PE ratio of -26.31 and a beta of 2.64. The stock's 50-day moving average price is $9.38 and its 200 day moving average price is $11.94. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

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

Insider Activity

In other news, VP Majid Emami sold 28,392 shares of the stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total transaction of $281,080.80. Following the transaction, the vice president now directly owns 669,834 shares in the company, valued at approximately $6,631,356.60. This trade represents a 4.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Timothy Stonehocker sold 27,714 shares of the firm's stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total transaction of $274,368.60. Following the completion of the sale, the chief technology officer now owns 768,867 shares of the company's stock, valued at approximately $7,611,783.30. This trade represents a 3.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 548,537 shares of company stock worth $5,567,760. Corporate insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently bought and sold shares of the company. Blue Trust Inc. boosted its stake in SoundHound AI by 197.6% in the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company's stock valued at $25,000 after acquiring an additional 830 shares in the last quarter. Orion Capital Management LLC acquired a new stake in shares of SoundHound AI during the fourth quarter worth $30,000. AlphaQuest LLC acquired a new stake in shares of SoundHound AI during the first quarter worth $32,000. Golden State Wealth Management LLC lifted its stake in shares of SoundHound AI by 100.0% during the first quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company's stock worth $34,000 after buying an additional 2,115 shares during the period. Finally, Compagnie Lombard Odier SCmA acquired a new stake in shares of SoundHound AI during the fourth quarter worth $40,000. 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.