SoundHound AI (NASDAQ:SOUN) Trading 3% Higher - Here's Why

Key Points

• SoundHound AI shares rose about 3% to $8.32 on Monday; the company has a market cap of $3.52B and reported quarterly EPS of ($0.02) and revenue of $55.06M, up 59.4% year-over-year.
• Analysts hold a Moderate Buy consensus with an average price target of $14.93, though several brokers have recently cut targets and issued mixed ratings.
• Insiders have been net sellers (307,973 shares sold over the past 90 days) while institutional investors own about 19.3% of the stock, signaling both insider liquidity and growing institutional interest.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price traded up 3% during trading on Monday . The stock traded as high as $8.35 and last traded at $8.32. 25,107,599 shares changed hands during trading, a decline of 4% from the average session volume of 26,190,830 shares. The stock had previously closed at $8.08.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on SOUN. HC Wainwright lowered their price target on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Weiss Ratings reissued a "sell (d-)" rating on shares of SoundHound AI in a report on Friday, January 9th. DA Davidson set a $14.00 price target on shares of SoundHound AI in a report on Thursday, January 8th. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Finally, Piper Sandler reaffirmed a "neutral" rating and issued a $9.00 price target (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 assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Trading Up 3.0%

The company has a market capitalization of $3.52 billion, a price-to-earnings ratio of -166.37 and a beta of 2.71. The company has a fifty day moving average of $7.44 and a 200-day moving average of $11.08.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced 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 company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm's revenue for the quarter was up 59.4% on a year-over-year basis. During the same quarter last year, the firm posted ($0.05) EPS. As a group, equities research analysts expect that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, COO Michael Zagorsek sold 52,968 shares of the business's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $359,652.72. Following the transaction, the chief operating officer directly owned 1,734,491 shares in the company, valued at $11,777,193.89. The trade was a 2.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider James Ming Hom sold 31,019 shares of the business's 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 completion of the transaction, the insider owned 772,364 shares in the company, valued at $5,244,351.56. The trade was a 3.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 307,973 shares of company stock worth $2,091,110 over the last ninety days. 9.17% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently made changes to their positions in the stock. Kieckhefer Group LLC lifted its position in shares of SoundHound AI by 47.2% during the third quarter. Kieckhefer Group LLC now owns 259,000 shares of the company's stock worth $4,165,000 after purchasing an additional 83,000 shares in the last quarter. Osaic Holdings Inc. lifted its position in shares of SoundHound AI by 14.0% during 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 in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of SoundHound AI by 252.8% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 218,868 shares of the company's stock worth $3,519,000 after purchasing an additional 156,835 shares in the last quarter. Fluent Financial LLC acquired a new stake in shares of SoundHound AI during the third quarter worth about $1,083,000. Finally, Carnegie Investment Counsel lifted its position in shares of SoundHound AI by 13.7% during the third quarter. Carnegie Investment Counsel now owns 1,363,405 shares of the company's stock worth $21,924,000 after purchasing an additional 164,725 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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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