SoundHound AI (NASDAQ:SOUN) Stock Price Up 1.2% - What's Next?

Key Points

• SoundHound AI shares rose 1.2% in Thursday trading, closing around $8.52 after reaching an intraday high of $8.55. Volume was below average, with about 18.5 million shares traded versus a 27.9 million average.
• Analyst sentiment remains mixed but generally positive, with a consensus rating of “Moderate Buy” and an average price target of $14.93. Recent moves included upgrades from Ladenburg Thalm/SH SH and Zacks, while others trimmed targets or held cautious views.
• SoundHound’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but EPS missed estimates by $0.01 and profitability remained negative. The company also saw insider selling and continued heavy institutional ownership.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price rose 1.2% during mid-day trading on Thursday . The stock traded as high as $8.55 and last traded at $8.52. Approximately 18,544,427 shares traded hands during mid-day trading, a decline of 33% from the average daily volume of 27,883,688 shares. The stock had previously closed at $8.42.

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. Zacks Research upgraded shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. HC Wainwright reduced their price target on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. Piper Sandler reiterated a "neutral" rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Finally, DA Davidson reiterated a "buy" rating and issued a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, SoundHound AI has a consensus rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Price Performance

The firm's 50-day moving average is $7.55 and its 200-day moving average is $9.90. The company has a market capitalization of $3.60 billion, a P/E ratio of -18.13 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its 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). The business had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 41.46%. The business's quarterly revenue was up 51.7% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.06) earnings per share. As a group, analysts forecast that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 124,510 shares of the business's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the completion of the sale, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Michael Zagorsek sold 52,968 shares of SoundHound AI stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $359,652.72. Following the transaction, the chief operating officer directly owned 1,734,491 shares in the company, valued at $11,777,193.89. This represents a 2.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 307,973 shares of company stock valued at $2,091,110 in the last three months. Corporate insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of SOUN. Vanguard Group Inc. boosted its position in shares of SoundHound AI by 16.4% in the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company's stock worth $698,798,000 after purchasing an additional 6,132,648 shares during the period. Morgan Stanley boosted its position in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the period. UBS Group AG boosted its position in shares of SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock worth $61,059,000 after purchasing an additional 2,676,707 shares during the period. Voloridge Investment Management LLC boosted its position in shares of SoundHound AI by 2,259.7% in the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company's stock worth $21,929,000 after purchasing an additional 2,106,298 shares during the period. Finally, Jump Financial LLC bought a new position in shares of SoundHound AI in the third quarter worth approximately $21,679,000. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

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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