SoundHound AI (NASDAQ:SOUN) Trading 1.9% Higher - What's Next?

Key Points

• SoundHound AI shares rose 1.9% to $6.97 mid-day with ~20.6M shares traded (about 20% below average); the stock trades below its 50-day ($7.48) and 200-day ($11.31) moving averages and has a market cap of $2.95 billion.
• The company reported EPS of ($0.02) that met estimates and revenue of $55.06 million, beating expectations and growing 59.4% year-over-year; analysts' consensus is a Moderate Buy with an average price target of $14.93 and a projected -0.38 EPS for the year.
• Insiders have sold a total of 307,973 shares (~$2.09M) in the past three months, including recent sales by the COO and SVP, leaving insiders with 9.17% ownership while institutions own about 19.28%.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) rose 1.9% during mid-day trading on Tuesday . The company traded as high as $7.14 and last traded at $6.97. Approximately 20,628,688 shares traded hands during trading, a decline of 20% from the average daily volume of 25,663,607 shares. The stock had previously closed at $6.84.

Wall Street Analysts Forecast Growth

SOUN has been the topic of a number of recent research reports. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research note on Thursday, December 18th. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. Weiss Ratings reiterated a "sell (d-)" rating on shares of SoundHound AI in a research note on Friday, January 9th. Zacks Research upgraded shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. Finally, DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, SoundHound AI has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Price Performance

The stock's 50-day moving average is $7.48 and its 200 day moving average is $11.31. The company has a market cap of $2.95 billion, a PE ratio of -139.37 and a beta of 2.71.

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

Insider Activity at SoundHound AI

In related news, COO Michael Zagorsek sold 52,968 shares of the 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 $359,652.72. Following the completion of the sale, the chief operating officer owned 1,734,491 shares of the company's stock, valued at $11,777,193.89. This represents a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Majid Emami sold 31,019 shares of the 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 $210,619.01. Following the sale, the senior vice president directly owned 501,826 shares of the company's stock, valued at $3,407,398.54. The trade was a 5.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 307,973 shares of company stock valued at $2,091,110 over the last three months. Company insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently bought and sold shares of the company. Danske Bank A S purchased a new stake in SoundHound AI during the third quarter valued at approximately $26,000. Investors Research Corp raised its holdings in shares of SoundHound AI by 62.4% in the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after buying an additional 700 shares during the last quarter. Financial Consulate Inc. purchased a new position in shares of SoundHound AI in the third quarter worth $32,000. Sound Income Strategies LLC raised its holdings in shares of SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after buying an additional 575 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after buying an additional 1,060 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.

About SoundHound AI

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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