SoundHound AI (NASDAQ:SOUN) Trading 11.6% Higher - Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were up 11.6% during trading on Tuesday . The stock traded as high as $11.03 and last traded at $10.69. Approximately 31,789,146 shares were traded during mid-day trading, a decline of 16% from the average daily volume of 38,011,167 shares. The stock had previously closed at $9.58.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. HC Wainwright decreased their price objective on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Piper Sandler initiated coverage on shares of SoundHound AI in a research report on Tuesday. They issued an "overweight" rating and a $12.00 price target for the company. Cantor Fitzgerald raised shares of SoundHound AI to a "hold" rating in a research report on Monday, February 24th. Wedbush dropped their price objective on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating on the stock in a research note on Friday, May 9th. Finally, DA Davidson dropped their price objective on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $10.50.

SoundHound AI Price Performance

The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $4.41 billion, a PE ratio of -30.67 and a beta of 2.71. The stock's 50-day moving average is $9.14 and its 200 day moving average is $11.73.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.03. The firm had revenue of $29.13 million for the quarter, compared to analyst estimates of $30.38 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The business's revenue for the quarter was up 151.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.07) EPS. As a group, equities analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In other news, insider James Ming Hom sold 3,815 shares of the firm's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $10.00, for a total transaction of $38,150.00. Following the completion of the transaction, the insider now directly owns 637,090 shares in the company, valued at $6,370,900. This trade represents a 0.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CTO Timothy Stonehocker sold 44,157 shares of the business's stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $12.00, for a total value of $529,884.00. Following the sale, the chief technology officer now owns 723,009 shares of the company's stock, valued at approximately $8,676,108. This represents a 5.76% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 548,537 shares of company stock valued at $5,567,760. 12.28% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of SOUN. Blue Trust Inc. lifted its holdings in SoundHound AI by 197.6% in the 4th quarter. Blue Trust Inc. now owns 1,250 shares of the company's stock worth $25,000 after buying an additional 830 shares during the period. Orion Capital Management LLC bought a new position in SoundHound AI during the 4th quarter valued at approximately $30,000. AlphaQuest LLC bought a new stake in shares of SoundHound AI in the 1st quarter worth $32,000. Golden State Wealth Management LLC increased its holdings in shares of SoundHound AI by 100.0% in the 1st quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company's stock worth $34,000 after purchasing an additional 2,115 shares in the last quarter. Finally, Compagnie Lombard Odier SCmA purchased a new position in shares of SoundHound AI in the 4th quarter worth $40,000. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

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.