SoundHound AI (NASDAQ:SOUN) Stock Price Up 4.9% - What's Next?

Key Points

• SoundHound AI stock rose 4.9% to $8.08 on Friday on heavy trading (~30.39M shares, ~16% above average), giving the company a market cap of about $3.42 billion.
• Analysts' consensus is a Moderate Buy with an average target of $14.93 (1 Strong Buy, 5 Buy, 3 Hold, 1 Sell).
• SoundHound reported Q4 EPS of ($0.02) in line with estimates and revenue of $55.06M (up 59.4% YoY), while insiders sold roughly 307,973 shares (~$2.09M) in the past 90 days and now own 9.17% of the stock.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price rose 4.9% on Friday . The company traded as high as $8.18 and last traded at $8.08. Approximately 30,390,283 shares traded hands during mid-day trading, an increase of 16% from the average daily volume of 26,171,254 shares. The stock had previously closed at $7.70.

Wall Street Analyst Weigh In

SOUN has been the subject of a number of recent analyst reports. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. HC Wainwright decreased their target price on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research report on Monday, March 2nd. Piper Sandler reissued a "neutral" rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, DA Davidson set a $14.00 price target on shares of SoundHound AI in a research report on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, SoundHound AI presently 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 $3.42 billion, a PE ratio of -161.57 and a beta of 2.71. The company's 50-day moving average price is $7.45 and its 200 day moving average price is $11.20.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm had revenue of $55.06 million during the quarter, compared to analyst estimates of $53.88 million. During the same quarter in the prior year, the firm earned ($0.05) EPS. The business's revenue for the quarter was up 59.4% compared to the same quarter last year. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $845,422.90. Following the completion of the sale, the chief executive officer directly owned 2,073,777 shares of the company's stock, valued at approximately $14,080,945.83. This represents a 5.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the sale, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 307,973 shares of company stock worth $2,091,110 in the last ninety days. Corporate insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sound Income Strategies LLC increased its holdings in SoundHound AI by 37.3% in the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after acquiring an additional 575 shares in the last quarter. EP Wealth Advisors LLC increased its holdings in SoundHound AI by 5.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after acquiring an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. increased its holdings in SoundHound AI by 2.7% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock worth $513,000 after acquiring an additional 830 shares in the last quarter. Insigneo Advisory Services LLC increased its holdings in SoundHound AI by 7.4% in the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company's stock worth $200,000 after acquiring an additional 858 shares in the last quarter. Finally, Clear Creek Financial Management LLC boosted its stake in SoundHound AI by 1.6% in the 4th quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company's stock worth $579,000 after purchasing an additional 941 shares during the period. 19.28% of the stock is owned by hedge funds and other institutional investors.

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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