SoundHound AI (NASDAQ:SOUN) Stock Price Up 1.3% - Here's Why

Key Points

• Shares rose 1.3% to $6.79 on Wednesday, trading as high as $7.51 with ~21.33 million shares changing hands (an 18% drop vs. average volume); the company has a market cap of $2.88 billion and 50/200-day SMAs of $7.66/$11.62.
• Analyst sentiment is mixed but tilted positive, with upgrades (e.g., Cantor Fitzgerald to overweight) and a consensus rating of Moderate Buy and an average price target of $14.93.
• SoundHound reported revenue of $55.06 million (up 59.4% YoY) and EPS of ($0.02) in the most recent quarter (meeting estimates), while insiders sold ~337,649 shares over the past three months and now own 9.17% of the stock.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price rose 1.3% during trading on Wednesday . The company traded as high as $7.51 and last traded at $6.79. Approximately 21,325,309 shares traded hands during trading, a decline of 18% from the average daily volume of 26,155,115 shares. The stock had previously closed at $6.70.

Analysts Set New Price Targets

SOUN has been the topic of a number of analyst reports. Cantor Fitzgerald upgraded SoundHound AI from a "neutral" rating to an "overweight" rating and lifted their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Zacks Research upgraded SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of SoundHound AI in a research report on Friday, January 9th. HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Stock Up 1.5%

The company has a market cap of $2.88 billion, a PE ratio of -135.97 and a beta of 2.71. The stock has a 50-day simple moving average of $7.66 and a 200 day simple moving average of $11.62.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting analysts' consensus estimates of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The company had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. During the same quarter in the previous year, the business earned ($0.05) earnings per share. The company's revenue for the quarter was up 59.4% on a year-over-year basis. As a group, research analysts anticipate that SoundHound AI, Inc. will post -0.38 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 SoundHound AI 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 sale, the senior vice president owned 501,826 shares in the company, valued at $3,407,398.54. The trade was a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider James Ming Hom sold 31,019 shares of SoundHound AI stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the sale, the insider directly owned 772,364 shares of the company's stock, valued at $5,244,351.56. The trade was a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 337,649 shares of company stock valued at $2,447,222. 9.17% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently modified their holdings of SOUN. Northwestern Mutual Wealth Management Co. grew its stake in shares of 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 buying an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC grew its stake in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock valued at $26,000 after buying an additional 1,544 shares in the last quarter. Danske Bank A S acquired a new stake in shares of SoundHound AI in the third quarter valued at $26,000. SHP Wealth Management acquired a new stake in shares of SoundHound AI in the fourth quarter valued at $27,000. Finally, Investors Research Corp grew its stake in shares of SoundHound AI by 62.4% in the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock valued at $29,000 after buying an additional 700 shares in the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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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