SoundHound AI (NASDAQ:SOUN) Stock Price Up 1.9% - Time to Buy?

Key Points

• Shares of SoundHound AI rose 1.9% to $8.22 on Monday with about 24.16 million shares traded (roughly 11% below average), and the stock is trading below its 50-day ($9.32) and 200-day ($12.66) moving averages.
• Analysts hold an average rating of Moderate Buy with a mean target of $14.93, reflecting mixed views (one Strong Buy, five Buy, three Hold, one Sell) and recent price-target cuts from firms including HC Wainwright and Piper Sandler.
• SoundHound’s latest quarter delivered $55.06 million in revenue (up 59.4% YoY) and EPS of ($0.02) that met estimates, but the company remains unprofitable with a negative net margin and a large negative trailing P/E.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares traded up 1.9% on Monday . The stock traded as high as $8.24 and last traded at $8.22. 24,164,108 shares were traded during trading, a decline of 11% from the average session volume of 27,015,930 shares. The stock had previously closed at $8.07.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on SOUN shares. Zacks Research upgraded SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. Piper Sandler restated a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. Finally, DA Davidson set a $14.00 target price on shares of SoundHound AI in a report on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, SoundHound AI has an average rating of "Moderate Buy" and an average target price of $14.93.

SoundHound AI Stock Performance

The stock has a market cap of $3.45 billion, a PE ratio of -164.37 and a beta of 2.65. The company has a 50 day moving average of $9.32 and a two-hundred day moving average of $12.66.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting the consensus estimate of ($0.02). The company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.SoundHound AI's quarterly revenue was up 59.4% compared to the same quarter last year. During the same period last year, the company earned ($0.05) earnings per share. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling

In other news, SVP Majid Emami sold 32,741 shares of the firm's stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $10.66, for a total value of $349,019.06. Following the transaction, the senior vice president owned 532,845 shares in the company, valued at $5,680,127.70. This trade represents a 5.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Michael Zagorsek sold 73,406 shares of SoundHound AI stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $828,019.68. Following the completion of the sale, the chief operating officer directly owned 1,787,459 shares in the company, valued at $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 460,922 shares of company stock worth $5,199,073 in the last 90 days. 9.17% of the stock is owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Danske Bank A S purchased a new position in shares of SoundHound AI in the third quarter worth about $26,000. Investors Research Corp boosted its holdings in shares of SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after purchasing an additional 700 shares during the last quarter. Financial Consulate Inc. purchased a new stake in shares of SoundHound AI in the third quarter valued at approximately $32,000. Sound Income Strategies LLC increased its holdings in shares of SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock valued at $34,000 after purchasing an additional 575 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after buying an additional 1,060 shares in the last quarter. Institutional investors and hedge funds 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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