SoundHound AI (NASDAQ:SOUN) Trading 5.9% Higher - Here's What Happened

Key Points

• SoundHound AI shares rose 5.9% in Thursday trading, reaching an intraday high of $8.78 before last trading at $8.56. Volume was slightly above average, with nearly 27.9 million shares traded.
• Analysts remain mixed but generally constructive on the stock, with a consensus rating of “Moderate Buy” and an average price target of $14.93. Recent calls included upgrades from Ladenburg Thalmann and Zacks, though some firms trimmed targets or kept neutral views.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a quarterly loss of $0.06 per share, slightly worse than expectations. Insider selling and continued losses underscore that profitability remains a challenge despite strong top-line growth.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded up 5.9% during mid-day trading on Thursday . The company traded as high as $8.78 and last traded at $8.56. 27,899,780 shares were traded during trading, an increase of 2% from the average session volume of 27,399,365 shares. The stock had previously closed at $8.08.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. Zacks Research upgraded SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Piper Sandler reiterated a "neutral" rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. DA Davidson reiterated a "buy" rating and set a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, HC Wainwright decreased their target price on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Performance

The firm's 50 day simple moving average is $7.63 and its 200-day simple moving average is $9.30. The company has a market cap of $3.70 billion, a price-to-earnings ratio of -18.21 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The business had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same period last year, the firm earned ($0.06) EPS. The company's revenue for the quarter was up 51.7% compared to the same quarter last year. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.43 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, insider James Ming Hom sold 31,019 shares of SoundHound AI stock in a transaction 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 insider owned 772,364 shares of the company's stock, valued at $5,244,351.56. The trade was a 3.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Majid Emami sold 31,019 shares of SoundHound AI stock in a transaction on Friday, March 20th. The stock was 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 in the company, valued at approximately $3,407,398.54. This trade represents a 5.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 307,973 shares of company stock worth $2,091,110 over the last 90 days. Corporate insiders own 8.84% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Verus Capital Partners LLC acquired a new stake in SoundHound AI during the 1st quarter worth $71,000. Amundi raised its holdings in shares of SoundHound AI by 112.4% during the 1st quarter. Amundi now owns 24,046 shares of the company's stock worth $165,000 after acquiring an additional 12,725 shares during the period. California State Teachers Retirement System raised its holdings in shares of SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after acquiring an additional 87,998 shares during the period. Empowered Funds LLC raised its holdings in shares of SoundHound AI by 19.6% during the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock worth $95,000 after acquiring an additional 2,277 shares during the period. Finally, Quantinno Capital Management LP raised its holdings in shares of SoundHound AI by 85.7% during the 1st quarter. Quantinno Capital Management LP now owns 84,594 shares of the company's stock worth $581,000 after acquiring an additional 39,028 shares during the period. Institutional investors and hedge funds 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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