SoundHound AI (NASDAQ:SOUN) Trading 1.5% Higher - Here's What Happened

Key Points

• Shares rose about 1.5% to $6.78 on Thursday with volume (~12.7M) roughly half the average, giving the company a market cap of $2.87 billion while the stock trades below its 50‑day ($7.94) and 200‑day ($11.88) moving averages.
• Analysts are mixed but consensus is a Moderate Buy with a $14.93 target; several firms cut price targets recently (HC Wainwright to $20, Piper Sandler to $9) amid varied ratings (1 Strong Buy, 5 Buy, 3 Hold, 1 Sell).
• SoundHound reported Q results that met EPS of ($0.02) with revenue of $55.06M (up 59.4% YoY) but remains unprofitable, and insiders have been selling stock (the CEO sold 124,510 shares and the COO sold 52,968 shares on March 20).

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were up 1.5% during mid-day trading on Thursday . The stock traded as high as $6.80 and last traded at $6.78. Approximately 12,727,490 shares were traded during trading, a decline of 52% from the average daily volume of 26,540,129 shares. The stock had previously closed at $6.68.

Analyst Ratings Changes

Several equities analysts recently commented on the company. HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research note on Thursday, December 18th. DA Davidson set a $14.00 price target on SoundHound AI in a research report on Thursday, January 8th. Zacks Research upgraded SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. Finally, Piper Sandler reissued a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Stock Performance

The stock's 50 day moving average is $7.94 and its 200 day moving average is $11.88. The company has a market capitalization of $2.87 billion, a PE ratio of -135.57 and a beta of 2.71.

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

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 124,510 shares of the business's stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $845,422.90. Following the sale, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. The trade was a 5.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Michael Zagorsek sold 52,968 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the sale, the chief operating officer directly owned 1,734,491 shares in the company, valued at $11,777,193.89. This trade represents a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 337,649 shares of company stock valued at $2,447,222 in the last 90 days. Corporate insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently modified their holdings of SOUN. Kieckhefer Group LLC boosted its holdings in SoundHound AI by 47.2% in the 3rd quarter. Kieckhefer Group LLC now owns 259,000 shares of the company's stock valued at $4,165,000 after purchasing an additional 83,000 shares during the period. Osaic Holdings Inc. increased its holdings in shares of SoundHound AI by 14.0% in the second quarter. Osaic Holdings Inc. now owns 498,691 shares of the company's stock worth $5,351,000 after purchasing an additional 61,212 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its position in shares of SoundHound AI by 252.8% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 218,868 shares of the company's stock worth $3,519,000 after buying an additional 156,835 shares in the last quarter. Fluent Financial LLC purchased a new stake in shares of SoundHound AI in the third quarter worth $1,083,000. Finally, Carnegie Investment Counsel boosted its stake in SoundHound AI by 13.7% during the third quarter. Carnegie Investment Counsel now owns 1,363,405 shares of the company's stock valued at $21,924,000 after buying an additional 164,725 shares during the period. 19.28% of the stock is currently owned by institutional investors.

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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