SoundHound AI (NASDAQ:SOUN) Trading 1.6% Higher - Still a Buy?

Key Points

• SoundHound AI shares increased by 1.6%, trading at $14.50 with a market capitalization of $6.25 billion.
• Analysts have mixed ratings, with one issuing a Strong Buy, five a Buy, and three a Hold, while the average price target stands at $13.36.
• In its latest earnings report, SoundHound AI reported a loss of $0.19 EPS, missing estimates but achieving a quarterly revenue increase of 216.3% compared to the previous year.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shot up 1.6% during trading on Monday . The stock traded as high as $14.62 and last traded at $14.50. 22,904,548 shares traded hands during trading, a decline of 46% from the average session volume of 42,798,555 shares. The stock had previously closed at $14.26.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Piper Sandler reaffirmed a "neutral" rating and set a $12.00 price objective on shares of SoundHound AI in a report on Monday, July 14th. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. Northland Capmk upgraded shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. Wall Street Zen cut shares of SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target for the company in a research note on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, SoundHound AI presently has an average rating of "Moderate Buy" and an average target price of $13.36.

SoundHound AI Stock Performance

The business has a 50-day moving average of $12.36 and a 200-day moving average of $10.43. The stock has a market capitalization of $6.25 billion, a price-to-earnings ratio of -24.45 and a beta of 2.58.

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

Insider Activity at SoundHound AI

In other news, CTO Timothy Stonehocker sold 2,981 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $9.68, for a total transaction of $28,856.08. Following the transaction, the chief technology officer directly owned 716,866 shares of the company's stock, valued at approximately $6,939,262.88. This trade represents a 0.41% 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 this hyperlink. Also, COO Michael Zagorsek sold 117,180 shares of SoundHound AI stock in a transaction on Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $1,096,804.80. Following the transaction, the chief operating officer owned 1,346,455 shares in the company, valued at approximately $12,602,818.80. This trade represents a 8.01% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 913,317 shares of company stock valued at $8,679,813. Insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Virtu Financial LLC purchased a new position in SoundHound AI in the first quarter worth about $2,395,000. Northern Trust Corp raised its position in SoundHound AI by 2.5% during the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock worth $24,190,000 after buying an additional 72,766 shares during the last quarter. Carnegie Investment Counsel raised its position in shares of SoundHound AI by 8.9% in the first quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock valued at $8,131,000 after buying an additional 87,810 shares during the last quarter. Liontrust Investment Partners LLP acquired a new position in SoundHound AI in the first quarter valued at about $1,639,000. Finally, Thoroughbred Financial Services LLC increased its stake in shares of SoundHound AI by 38.4% during the first quarter. Thoroughbred Financial Services LLC now owns 113,475 shares of the company's stock worth $921,000 after buying an additional 31,500 shares during the period. Hedge funds and other institutional investors 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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