SoundHound AI (NASDAQ:SOUN) Stock Price Up 5.1% - Time to Buy?

Key Points

• SoundHound AI shares rose 5.1% on Friday, briefly hitting $9.22 before closing at $9.00, with trading volume well above average at about 40.4 million shares.
• Recent analyst sentiment is mixed but leans positive: the stock carries a Moderate Buy consensus and an average price target of $14.93, though some firms recently lowered targets or stayed neutral.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still reported a small EPS miss and remains unprofitable.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price rose 5.1% during trading on Friday . The stock traded as high as $9.22 and last traded at $9.00. Approximately 40,447,250 shares were traded during mid-day trading, an increase of 47% from the average daily volume of 27,532,604 shares. The stock had previously closed at $8.56.

Analyst Upgrades and Downgrades

SOUN has been the subject of several recent research reports. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. Piper Sandler reaffirmed a "neutral" rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. DA Davidson reaffirmed a "buy" rating and set a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Finally, HC Wainwright lowered their target price on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a report on Monday, March 2nd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Up 4.9%

The company has a 50-day moving average price of $7.64 and a 200-day moving average price of $9.26. The firm has a market capitalization of $3.89 billion, a price-to-earnings ratio of -19.11 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The business had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The business's quarterly revenue was up 51.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.06) earnings per share. As a group, analysts forecast that SoundHound AI, Inc. will post -0.43 earnings per share for the current year.

Insider Buying and Selling at SoundHound AI

In other news, CFO Nitesh Sharan sold 44,027 shares of the business's 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 transaction, the chief financial officer directly owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Michael Zagorsek sold 52,968 shares of the business's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the transaction, the chief operating officer owned 1,734,491 shares of the company's stock, valued at approximately $11,777,193.89. This represents a 2.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 307,973 shares of company stock valued at $2,091,110. 8.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently made changes to their positions in the business. Verus Capital Partners LLC acquired a new stake in SoundHound AI in the first quarter worth approximately $71,000. Amundi lifted its position in SoundHound AI by 112.4% in the first quarter. Amundi now owns 24,046 shares of the company's stock worth $165,000 after purchasing an additional 12,725 shares during the period. California State Teachers Retirement System lifted its position in SoundHound AI by 25.0% in the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after purchasing an additional 87,998 shares during the period. Empowered Funds LLC lifted its position in SoundHound AI by 19.6% in the first quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock worth $95,000 after purchasing an additional 2,277 shares during the period. Finally, Quantinno Capital Management LP lifted its position in SoundHound AI by 85.7% in the first quarter. Quantinno Capital Management LP now owns 84,594 shares of the company's stock worth $581,000 after purchasing an additional 39,028 shares during the period. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.