SoundHound AI (NASDAQ:SOUN) Shares Up 3.9% - Still a Buy?

Key Points

• SoundHound AI's stock rose by 3.9% to $12.70, with trading volume declining sharply to about 20.4 million shares, marking a 50% decrease from its average volume.
• Analysts have mixed views, with Northland Capital upgrading the stock to a "strong-buy" and setting a target price of $14.50, while HC Wainwright reduced its price target to $18.00.
• The company's recent earnings report revealed a 216.3% year-over-year revenue increase, although it missed EPS estimates, reporting ($0.19) compared to expectations of ($0.06).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price was up 3.9% on Friday . The stock traded as high as $12.64 and last traded at $12.70. Approximately 20,380,052 shares were traded during trading, a decline of 50% from the average daily volume of 41,109,262 shares. The stock had previously closed at $12.23.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on SOUN shares. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 8th. Northland Securities raised shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective on the stock in a research note on Friday, August 8th. 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 research note on Monday, May 12th. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a research note on Monday, July 14th. Finally, Wall Street Zen cut SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $13.36.

SoundHound AI Stock Up 2.7%

The company has a market cap of $5.05 billion, a P/E ratio of -19.94 and a beta of 2.57. The business has a fifty day moving average price of $11.65 and a 200-day moving average price of $10.54.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The firm had revenue of $42.68 million for the quarter, compared to the consensus estimate of $32.88 million. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The business's revenue was up 216.3% on a year-over-year basis. During the same period last year, the company posted ($0.11) EPS. SoundHound AI has set its FY 2025 guidance at EPS. As a group, research analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Nitesh Sharan sold 111,111 shares of the stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the completion of the transaction, the chief financial officer directly owned 1,442,900 shares of the company's stock, valued at $13,505,544. This represents a 7.15% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Michael Zagorsek sold 117,180 shares of the business's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,096,804.80. Following the sale, the chief operating officer directly owned 1,346,455 shares in the company, valued at $12,602,818.80. The trade was a 8.01% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 913,317 shares of company stock valued at $8,679,813. 9.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Virtu Financial LLC bought a new position in shares of SoundHound AI in the first quarter worth approximately $2,395,000. Carnegie Investment Counsel lifted its position in SoundHound AI by 8.9% in the 1st quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock worth $8,131,000 after buying an additional 87,810 shares during the last quarter. Thoroughbred Financial Services LLC lifted its position in SoundHound AI by 38.4% in the 1st quarter. Thoroughbred Financial Services LLC now owns 113,475 shares of the company's stock worth $921,000 after buying an additional 31,500 shares during the last quarter. Liontrust Investment Partners LLP bought a new position in SoundHound AI during the 1st quarter worth approximately $1,639,000. Finally, Yarbrough Capital LLC bought a new position in SoundHound AI during the 1st quarter valued at approximately $1,258,000. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Company Profile

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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