SoundHound AI (NASDAQ:SOUN) Shares Up 20.1% - Time to Buy?

Key Points

• SoundHound AI shares jumped 20.1% intraday to $9.56 on Friday, with heavy trading of 67.6 million shares — a 151% surge versus average session volume.
• Q4 revenue beat at $55.06M (up 59.4% YoY) while EPS matched estimates at ($0.02); the company remains unprofitable, and analysts maintain a Moderate Buy consensus with an average price target of $14.93.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price shot up 20.1% during mid-day trading on Friday . The company traded as high as $9.60 and last traded at $9.56. 67,644,569 shares were traded during trading, an increase of 151% from the average session volume of 26,991,320 shares. The stock had previously closed at $7.96.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. DA Davidson reissued a "buy" rating and issued a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. HC Wainwright lowered their price target on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Piper Sandler reaffirmed a "neutral" rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of SoundHound AI in a report on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Trading Up 20.1%

The stock has a market cap of $4.04 billion, a P/E ratio of -191.16 and a beta of 2.71. The company has a 50-day moving average price of $7.49 and a two-hundred day moving average price of $10.55.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting the consensus estimate of ($0.02). The firm had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The company's revenue for the quarter was up 59.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.05) EPS. As a group, equities analysts forecast that SoundHound AI, Inc. will post -0.34 earnings per share for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI news, SVP Majid Emami sold 31,019 shares of the company's stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the senior vice president owned 501,826 shares of the company's stock, valued at $3,407,398.54. This represents a 5.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Nitesh Sharan sold 44,027 shares of the company's stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the completion of the transaction, the chief financial officer directly owned 1,661,121 shares in the company, valued at $11,279,011.59. This trade represents a 2.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 307,973 shares of company stock worth $2,091,110 over the last ninety days. Corporate insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds have recently bought and sold shares of the business. Mirae Asset Global Investments Co. Ltd. raised its stake in SoundHound AI by 252.8% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 218,868 shares of the company's stock valued at $3,519,000 after buying an additional 156,835 shares during the last quarter. Rakuten Securities Inc. raised its stake in SoundHound AI by 877.9% in the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company's stock valued at $3,326,000 after buying an additional 299,492 shares during the last quarter. Nisa Investment Advisors LLC raised its stake in SoundHound AI by 97.7% in the third quarter. Nisa Investment Advisors LLC now owns 90,041 shares of the company's stock valued at $1,448,000 after buying an additional 44,496 shares during the last quarter. Clear Street Group Inc. purchased a new stake in SoundHound AI in the third quarter valued at about $12,944,000. Finally, Alta Wealth Advisors LLC purchased a new stake in SoundHound AI in the third quarter valued at about $1,001,000. 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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