SoundHound AI (NASDAQ:SOUN) Stock Price Up 2.6% - Here's Why

Key Points

• SoundHound AI shares increased by 2.6% during mid-day trading, hitting a high of $21.88 and closing at $21.40.
• Several analysts have recently issued mixed ratings for SoundHound AI, with price targets ranging from $12.00 to $17.00, resulting in an average rating of Moderate Buy.
• In its latest quarterly earnings report, SoundHound AI reported a significant 216.3% increase in revenue year-over-year, despite a loss of ($0.19) earnings per share.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares rose 2.6% during mid-day trading on Wednesday . The stock traded as high as $21.88 and last traded at $21.40. Approximately 54,463,810 shares changed hands during trading, an increase of 16% from the average daily volume of 46,866,926 shares. The stock had previously closed at $20.86.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on SOUN shares. Piper Sandler reissued a "neutral" rating and set a $12.00 price target on shares of SoundHound AI in a report on Monday, July 14th. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target on the stock in a report on Friday, August 8th. Weiss Ratings reissued a "sell (d-)" rating on shares of SoundHound AI in a report on Tuesday. DA Davidson lifted their target price on SoundHound AI from $15.00 to $17.00 and gave the stock a "buy" rating in a report on Wednesday, September 10th. Finally, Wall Street Zen lowered SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $14.36.

SoundHound AI Trading Up 2.6%

The stock has a market capitalization of $8.72 billion, a price-to-earnings ratio of -33.97 and a beta of 2.60. The stock has a 50-day simple moving average of $15.17 and a 200 day simple moving average of $11.75.

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

Insider Buying and Selling at SoundHound AI

In other news, insider James Ming Hom sold 42,119 shares of the business's stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $673,904.00. Following the sale, the insider directly owned 845,441 shares in the company, valued at approximately $13,527,056. The trade was a 4.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CTO Timothy Stonehocker sold 70,524 shares of the business's stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $1,410,480.00. Following the completion of the sale, the chief technology officer directly owned 606,525 shares in the company, valued at approximately $12,130,500. This represents a 10.42% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 725,541 shares of company stock valued at $12,675,035 in the last quarter. 9.17% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently made changes to their positions in the company. Virtu Financial LLC acquired a new position in SoundHound AI in the first quarter valued at about $2,395,000. Northern Trust Corp lifted its stake in SoundHound AI by 2.5% in the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after buying an additional 72,766 shares during the period. Carnegie Investment Counsel increased its holdings in shares of SoundHound AI by 8.9% in the first quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock worth $8,131,000 after acquiring an additional 87,810 shares in the last quarter. Liontrust Investment Partners LLP bought a new stake in shares of SoundHound AI in the first quarter worth about $1,639,000. Finally, First Manhattan CO. LLC. bought a new stake in shares of SoundHound AI in the first quarter worth about $985,000. Institutional investors and hedge funds own 19.28% of the company's stock.

About SoundHound AI

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.

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