SoundHound AI (NASDAQ:SOUN) Stock Price Up 4.3% - Here's Why

Key Points

• SoundHound AI's stock price increased by 4.3%, reaching a last trading price of $18.05, with a significant volume surge of 163% compared to its average.
• Several analysts have revised their ratings on SoundHound AI, with DA Davidson setting a new price target of $17.00 and a "buy" rating, while Wall Street Zen downgraded it to "sell."
• The company reported earnings per share of ($0.19), missing analysts' estimates, though its revenue of $42.68 million marked a 216.3% increase year-over-year.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) traded up 4.3% during trading on Tuesday . The company traded as high as $19.33 and last traded at $18.05. 119,795,459 shares changed hands during mid-day trading, an increase of 163% from the average session volume of 45,487,582 shares. The stock had previously closed at $17.31.

Analysts Set New Price Targets

Several research analysts have recently weighed in on SOUN shares. Wall Street Zen cut shares of SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. DA Davidson upped their price objective on SoundHound AI from $15.00 to $17.00 and gave the company a "buy" rating in a report on Wednesday, September 10th. LADENBURG THALM/SH SH raised SoundHound AI from a "neutral" rating to a "buy" rating and raised their target price for the stock from $9.00 to $16.00 in a research note on Monday, August 11th. HC Wainwright reaffirmed a "buy" rating and issued a $18.00 price target on shares of SoundHound AI in a research note on Wednesday, September 17th. Finally, Piper Sandler reissued a "neutral" rating and set a $12.00 price objective on shares of SoundHound AI in a research report on Monday, July 14th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $14.36.

SoundHound AI Stock Performance

The company has a market capitalization of $7.36 billion, a price-to-earnings ratio of -28.65 and a beta of 2.58. The firm has a 50-day simple moving average of $13.15 and a two-hundred day simple moving average of $10.84.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates 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 business had revenue of $42.68 million during the quarter, compared to analyst estimates of $32.88 million. During the same quarter last year, the firm posted ($0.11) EPS. The company's revenue for the quarter was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. As a group, equities analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Institutional Trading of SoundHound AI

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in SoundHound AI by 9.5% during the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock worth $284,687,000 after acquiring an additional 3,028,281 shares in the last quarter. Geode Capital Management LLC raised its stake in SoundHound AI by 8.3% in the second quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company's stock valued at $94,759,000 after buying an additional 679,436 shares in the last quarter. State Street Corp boosted its position in shares of SoundHound AI by 9.1% during the 2nd quarter. State Street Corp now owns 8,476,348 shares of the company's stock worth $90,951,000 after acquiring an additional 708,369 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of SoundHound AI by 1.0% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,024,632 shares of the company's stock valued at $53,906,000 after acquiring an additional 50,904 shares during the last quarter. Finally, Northern Trust Corp increased its holdings in shares of SoundHound AI by 2.5% in the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after acquiring an additional 72,766 shares during the last quarter. 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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