SoundHound AI (NASDAQ:SOUN) Stock Price Up 6.4% - What's Next?

Key Points

• Shares rose 6.4% on Monday to $6.84 (intraday high $6.87) on ~17.38 million shares traded, about 32% below the stock's average daily volume.
• SoundHound beat revenue expectations with $55.06M (up 59.4% YoY) and reported EPS of ($0.02) in the quarter, but remains unprofitable with a negative net margin (-8.71%) and analysts expect -$0.38 EPS for the fiscal year.
• Analysts hold a consensus of "Moderate Buy" with a $14.93 target amid mixed price-target cuts, while insiders have sold 307,973 shares (~$2.09M) in the past 90 days (insiders own 9.17% of shares).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price rose 6.4% during trading on Monday . The stock traded as high as $6.87 and last traded at $6.84. Approximately 17,377,014 shares were traded during trading, a decline of 32% from the average daily volume of 25,733,010 shares. The stock had previously closed at $6.43.

Analyst Ratings Changes

SOUN has been the topic of several analyst reports. Piper Sandler reissued 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 dropped their target price on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a report on Thursday, December 18th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of SoundHound AI in a report on Friday, January 9th. Finally, DA Davidson set a $14.00 target price on shares of SoundHound AI in a report on Thursday, January 8th. One 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 stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Stock Performance

The stock has a market capitalization of $2.89 billion, a P/E ratio of -136.77 and a beta of 2.71. The company's fifty day simple moving average is $7.51 and its two-hundred day simple moving average is $11.38.

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

Insider Transactions at SoundHound AI

In other SoundHound AI news, insider James Ming Hom sold 31,019 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 transaction of $210,619.01. Following the transaction, the insider owned 772,364 shares in the company, valued at $5,244,351.56. This represents a 3.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Majid Emami sold 31,019 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 $210,619.01. Following the transaction, the senior vice president owned 501,826 shares in the company, valued at approximately $3,407,398.54. The trade was a 5.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 307,973 shares of company stock worth $2,091,110. 9.17% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in SOUN. Northwestern Mutual Wealth Management Co. grew its position in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC grew its position in shares of SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after purchasing an additional 1,544 shares in the last quarter. Danske Bank A S acquired a new position in shares of SoundHound AI during the 3rd quarter worth approximately $26,000. SHP Wealth Management acquired a new position in shares of SoundHound AI during the 4th quarter worth approximately $27,000. Finally, Investors Research Corp grew its position in shares of SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after purchasing an additional 700 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

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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