SoundHound AI (NASDAQ:SOUN) Trading 2.7% Higher - Still a Buy?

Key Points

• SoundHound AI's stock price increased by 2.7% to last trade at $18.24, with a noticeable decrease in trading volume compared to the average.
• Analysts show a mixed outlook on SoundHound AI, with ratings ranging from "Strong Buy" to "Sell," and a consensus target price of $15.50.
• The company reported $42.68 million in revenue for the last quarter, significantly exceeding analyst estimates, despite posting a loss of ($0.19) per share.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) rose 2.7% during mid-day trading on Thursday . The stock traded as high as $18.70 and last traded at $18.24. Approximately 27,968,463 shares changed hands during mid-day trading, a decline of 40% from the average daily volume of 46,653,824 shares. The stock had previously closed at $17.76.

Wall Street Analysts Forecast Growth

SOUN has been the subject of several analyst reports. HC Wainwright boosted their price objective on SoundHound AI from $18.00 to $26.00 and gave the company a "buy" rating in a report on Thursday, October 16th. Piper Sandler reiterated a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a research note on Monday, July 14th. Oppenheimer initiated coverage on shares of SoundHound AI in a research note on Thursday, September 11th. They issued a "market perform" rating for the company. DA Davidson boosted their target price on shares of SoundHound AI from $15.00 to $17.00 and gave the company a "buy" rating in a research note on Wednesday, September 10th. Finally, Northland Capmk upgraded shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, SoundHound AI presently has a consensus rating of "Moderate Buy" and a consensus target price of $15.50.

SoundHound AI Stock Performance

The company has a 50 day moving average price of $15.82 and a two-hundred day moving average price of $12.19. The firm has a market capitalization of $7.44 billion, a price-to-earnings ratio of -28.95 and a beta of 2.60.

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

Insider Activity

In other SoundHound AI news, CEO Keyvan Mohajer sold 138,523 shares of the stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $2,216,368.00. Following the completion of the transaction, the chief executive officer owned 2,461,267 shares of the company's stock, valued at $39,380,272. This represents a 5.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Michael Zagorsek sold 69,837 shares of the stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $1,117,392.00. Following the completion of the transaction, the chief operating officer directly owned 1,860,790 shares of the company's stock, valued at approximately $29,772,640. This represents a 3.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 785,917 shares of company stock worth $13,955,610. Company insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the business. Virtu Financial LLC acquired a new stake in shares of SoundHound AI in the first quarter valued at about $2,395,000. Northern Trust Corp raised its holdings in SoundHound AI by 2.5% in the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after acquiring an additional 72,766 shares during the last quarter. Carnegie Investment Counsel raised its holdings in SoundHound AI by 8.9% in the 1st quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock valued at $8,131,000 after acquiring an additional 87,810 shares during the last quarter. Liontrust Investment Partners LLP acquired a new stake in shares of SoundHound AI in the first quarter valued at approximately $1,639,000. Finally, First Manhattan CO. LLC. acquired a new stake in shares of SoundHound AI in the first quarter valued at approximately $985,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.