SoundHound AI (NASDAQ:SOUN) Stock Price Up 7% - Time to Buy?

Key Points

• SoundHound AI's stock price increased by 7% to $15.10 amid decreased trading volume, down 87% from usual levels.
• Analyst ratings show mixed sentiment, with Wedbush setting a $16.00 target price while Wall Street Zen downgraded the stock to a sell rating.
• The company reported a 216.3% increase in quarterly revenue year-over-year, but missed earnings expectations, posting a loss of ($0.19) EPS.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price rose 7% during mid-day trading on Monday . The stock traded as high as $14.79 and last traded at $15.10. Approximately 5,754,927 shares traded hands during trading, a decline of 87% from the average daily volume of 43,578,367 shares. The stock had previously closed at $14.12.

Analyst Ratings Changes

SOUN has been the topic of several recent analyst reports. Wedbush reissued an "outperform" rating and set a $16.00 target price on shares of SoundHound AI in a research note on Thursday. Piper Sandler reissued a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research note on Monday, July 14th. LADENBURG THALM/SH SH raised shares of SoundHound AI from a "neutral" rating to a "buy" rating and boosted their target price for the company from $9.00 to $16.00 in a research note on Monday, August 11th. Oppenheimer initiated coverage on shares of SoundHound AI in a research note on Thursday. They set a "market perform" rating on the stock. Finally, Wall Street Zen downgraded shares of SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $14.36.

SoundHound AI Stock Up 1.1%

The stock has a market capitalization of $5.82 billion, a price-to-earnings ratio of -22.87 and a beta of 2.58. The company's 50-day simple moving average is $12.73 and its 200 day simple moving average is $10.61.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.19) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The business had revenue of $42.68 million for the quarter, compared to analyst estimates of $32.88 million. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The company's quarterly revenue was up 216.3% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. On average, equities analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In related news, VP Majid Emami sold 60,295 shares of the stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $10.00, for a total value of $602,950.00. Following the completion of the sale, the vice president owned 477,657 shares in the company, valued at approximately $4,776,570. This trade represents a 11.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Keyvan Mohajer sold 254,376 shares of the stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $2,380,959.36. Following the completion of the sale, the chief executive officer owned 1,749,790 shares of the company's stock, valued at approximately $16,378,034.40. The trade was a 12.69% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 780,965 shares of company stock valued at $7,350,999. 9.17% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SOUN. Vanguard Group Inc. raised its position in SoundHound AI by 9.5% in the first quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock worth $284,687,000 after purchasing an additional 3,028,281 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of SoundHound AI by 84.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock worth $40,390,000 after buying an additional 2,274,105 shares in the last quarter. HRT Financial LP acquired a new stake in shares of SoundHound AI during the second quarter worth approximately $11,914,000. Goldman Sachs Group Inc. increased its holdings in shares of SoundHound AI by 69.8% during the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock worth $21,434,000 after buying an additional 1,085,473 shares in the last quarter. Finally, Nuveen LLC acquired a new stake in shares of SoundHound AI during the first quarter worth approximately $7,406,000. 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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