SoundHound AI (NASDAQ:SOUN) Trading 13.9% Higher - Here's What Happened

Key Points

• Shares jumped 13.9% intraday to $6.87 on Tuesday with about 26.2M shares traded, giving the company a market cap near $2.9B while the stock remains below its 50‑day ($8.09) and 200‑day ($11.96) moving averages.
• Analysts are mixed but the consensus is a Moderate Buy with an average price target of $14.93; recent notes include Cantor Fitzgerald raising its target to $15 and HC Wainwright trimming its target to $20.
• SoundHound reported Q results showing EPS of ($0.02) that matched estimates and revenue up 59.4% YoY to $55.06M, while insiders have sold shares recently (337,649 over 90 days) even as institutions like Goldman Sachs and RBC increased holdings.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shot up 13.9% during mid-day trading on Tuesday . The company traded as high as $6.94 and last traded at $6.87. 26,218,870 shares traded hands during trading, a decline of 3% from the average session volume of 26,897,480 shares. The stock had previously closed at $6.03.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a report on Thursday, December 18th. Weiss Ratings restated a "sell (d-)" rating on shares of SoundHound AI in a research report on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a "neutral" rating to an "overweight" rating and upped their price target for the company from $13.00 to $15.00 in a research note on Friday, December 12th. Piper Sandler reiterated a "neutral" rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Finally, HC Wainwright cut their price objective 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. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Stock Performance

The stock has a market cap of $2.90 billion, a PE ratio of -137.37 and a beta of 2.65. The stock's 50-day moving average is $8.09 and its two-hundred day moving average is $11.96.

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

Insider Activity at SoundHound AI

In other news, insider James Ming Hom sold 31,019 shares of the stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the sale, the insider owned 772,364 shares of the company's stock, valued at approximately $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of the firm's 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 $298,943.33. Following the completion of the transaction, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 337,649 shares of company stock worth $2,447,222 over the last ninety days. Company insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada increased its holdings in SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company's stock valued at $1,301,000 after buying an additional 66,714 shares during the last quarter. Integrated Wealth Concepts LLC lifted its holdings in SoundHound AI by 8.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock worth $119,000 after buying an additional 1,201 shares during the last quarter. NewEdge Advisors LLC boosted its position in shares of SoundHound AI by 12.9% during the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company's stock worth $333,000 after acquiring an additional 4,692 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after acquiring an additional 1,085,473 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of SoundHound AI by 10.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company's stock valued at $5,620,000 after acquiring an additional 63,398 shares during the last quarter. 19.28% of the stock is 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.

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