SoundHound AI (NASDAQ:SOUN) Shares Up 4% - Should You Buy?

Key Points

• SoundHound AI shares rose 4% in Tuesday trading, with volume running well above average as the stock moved to $6.56 after touching $6.60.
• Analyst sentiment is mixed but generally positive: the stock has a Moderate Buy consensus rating and an average price target of $14.93, though one firm still rates it a sell.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but SoundHound still posted a small EPS miss and remains unprofitable, with insiders recently selling shares.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price was up 4% during mid-day trading on Tuesday . The company traded as high as $6.60 and last traded at $6.56. 38,051,882 shares were traded during mid-day trading, an increase of 37% from the average session volume of 27,761,260 shares. The stock had previously closed at $6.31.

Wall Street Analysts Forecast Growth

Several research analysts have commented on SOUN shares. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. DA Davidson reissued a "buy" rating and set a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Price Performance

The business's 50-day simple moving average is $7.33 and its two-hundred day simple moving average is $8.03. The stock has a market cap of $2.83 billion, a price-to-earnings ratio of -13.94 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly 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). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same quarter last year, the company posted ($0.06) earnings per share. The firm's quarterly revenue was up 51.7% on a year-over-year basis. Equities research 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, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the transaction, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This trade represents a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at $14,526,388.02. The trade was a 6.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in SOUN. Danske Bank A S acquired a new position in shares of SoundHound AI during the third quarter worth $26,000. Northwestern Mutual Wealth Management Co. increased its holdings in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC lifted its position in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after purchasing an additional 1,544 shares during the period. SHP Wealth Management bought a new stake in shares of SoundHound AI in the 4th quarter valued at $27,000. Finally, Parallel Advisors LLC boosted its stake in shares of SoundHound AI by 42.8% in the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock valued at $52,000 after purchasing an additional 960 shares during the last quarter. 19.28% of the stock is owned by institutional investors.

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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