SoundHound AI (NASDAQ:SOUN) Stock Price Up 3.2% - What's Next?

Key Points

• SoundHound AI shares rose 3.2% on Friday, trading as high as $6.55 with volume above average at about 31.7 million shares.
• Analyst sentiment remains mixed but generally constructive: the stock has a consensus rating of “Moderate Buy” and an average price target of $14.93, well above the current price.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a small EPS miss and remains unprofitable, with insiders also selling shares recently.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) rose 3.2% during trading on Friday . The company traded as high as $6.55 and last traded at $6.41. Approximately 31,714,587 shares were traded during trading, an increase of 16% from the average session volume of 27,439,982 shares. The stock had previously closed at $6.21.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. DA Davidson reiterated a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Piper Sandler reiterated a "neutral" rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Up 3.2%

The stock has a 50-day moving average of $7.93 and a 200 day moving average of $8.59. The stock has a market cap of $2.77 billion, a PE ratio of -13.64 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same quarter in the prior year, the business earned ($0.06) EPS. The firm's quarterly revenue was up 51.7% on a year-over-year basis. Research analysts forecast that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Buying and Selling

In other news, SVP Majid Emami sold 28,843 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the senior vice president directly owned 472,983 shares of the company's stock, valued at approximately $3,528,453.18. The trade was a 5.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the transaction, the insider owned 743,521 shares in the company, valued at approximately $5,546,666.66. This represents a 3.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 268,022 shares of company stock valued at $1,999,444 over the last three months. Company insiders own 8.84% of the company's stock.

Institutional Trading of SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock valued at $452,313,000 after purchasing an additional 1,909,868 shares in the last quarter. Rakuten Securities Inc. grew its position in shares of SoundHound AI by 877.9% during the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company's stock worth $3,326,000 after buying an additional 299,492 shares in the last quarter. Clear Street Group Inc. acquired a new stake in SoundHound AI in the third quarter valued at approximately $12,944,000. UBS Group AG lifted its stake in 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 acquiring an additional 2,676,707 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in SoundHound AI by 140.5% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company's stock worth $2,826,000 after acquiring an additional 155,743 shares in the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.

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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