SoundHound AI (NASDAQ:SOUN) Trading 2.4% Higher - Should You Buy?

Key Points

• Stock Performance: SoundHound AI's stock price increased by 2.4% to $12.40, following a trading volume that was 65% lower than its average.
• Analyst Ratings: Analysts have varying opinions on the stock, with price targets ranging from $14.50 to $18.00, while it currently holds a consensus rating of "Moderate Buy."
• Earnings Report: The company reported a significant year-over-year revenue increase of 216.3% but missed earnings expectations with a loss of $0.19 per share.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price rose 2.4% during trading on Tuesday . The company traded as high as $12.69 and last traded at $12.40. Approximately 14,348,842 shares changed hands during mid-day trading, a decline of 65% from the average daily volume of 41,201,055 shares. The stock had previously closed at $12.11.

Analysts Set New Price Targets

Several research analysts recently issued reports on SOUN shares. Wall Street Zen cut SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. HC Wainwright dropped their price target on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a report on Monday, May 12th. Wedbush boosted their target price on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $9.00 to $16.00 in a research note on Monday, August 11th. Finally, Piper Sandler restated a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research report on Monday, July 14th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $13.36.

SoundHound AI Stock Up 3.1%

The company has a 50-day moving average of $11.87 and a 200 day moving average of $10.44. The firm has a market capitalization of $5.00 billion, a PE ratio of -19.49 and a beta of 2.57.

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

Insider Activity at SoundHound AI

In related news, COO Michael Zagorsek sold 117,180 shares of the stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $1,096,804.80. Following the completion of the sale, the chief operating officer directly owned 1,346,455 shares in the company, valued at $12,602,818.80. This represents a 8.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Diana Sroka sold 2,800 shares of the stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $9.94, for a total value of $27,832.00. Following the sale, the director owned 153,949 shares of the company's stock, valued at $1,530,253.06. This represents a 1.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 913,317 shares of company stock worth $8,679,813 over the last three months. Corporate insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors have recently bought and sold shares of SOUN. B. Riley Wealth Advisors Inc. bought a new position in SoundHound AI during the 2nd quarter valued at approximately $157,000. Newbridge Financial Services Group Inc. raised its position in SoundHound AI by 6.3% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 31,050 shares of the company's stock valued at $333,000 after purchasing an additional 1,850 shares during the last quarter. Marex Group plc bought a new position in SoundHound AI during the 2nd quarter valued at approximately $3,728,000. Tyler Stone Wealth Management raised its position in SoundHound AI by 20.7% during the 2nd quarter. Tyler Stone Wealth Management now owns 32,190 shares of the company's stock valued at $345,000 after purchasing an additional 5,510 shares during the last quarter. Finally, Caxton Associates LLP bought a new position in SoundHound AI during the 2nd quarter valued at approximately $120,000. 19.28% of the stock is currently owned by hedge funds and other 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.