SoundHound AI (NASDAQ:SOUN) Trading Up 0.9% - Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price shot up 0.9% during trading on Friday . The company traded as high as $11.40 and last traded at $11.11. 10,597,963 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 40,076,047 shares. The stock had previously closed at $11.01.

Analysts Set New Price Targets

A number of brokerages recently commented on SOUN. Wedbush decreased their target price on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. DA Davidson cut their target price on SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research note on Monday. Finally, Cantor Fitzgerald upgraded SoundHound AI to a "hold" rating in a research report on Monday, February 24th. Four analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $10.29.

SoundHound AI Trading Up 0.9%

The stock has a 50 day moving average of $9.03 and a 200 day moving average of $11.45. The firm has a market cap of $4.43 billion, a P/E ratio of -31.01 and a beta of 2.71. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.09) by $0.03. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. The firm had revenue of $29.13 million for the quarter, compared to analysts' expectations of $30.38 million. During the same period last year, the firm earned ($0.07) earnings per share. The company's revenue for the quarter was up 151.2% compared to the same quarter last year. As a group, equities research analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Activity

In other news, Director Diana Sroka sold 3,402 shares of the business's stock in a transaction on Monday, March 24th. The shares were sold at an average price of $10.08, for a total transaction of $34,292.16. Following the completion of the sale, the director now owns 138,850 shares of the company's stock, valued at $1,399,608. The trade was a 2.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Timothy Stonehocker sold 44,157 shares of the business's stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $12.00, for a total transaction of $529,884.00. Following the sale, the chief technology officer now directly owns 723,009 shares of the company's stock, valued at approximately $8,676,108. The trade was a 5.76% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 548,537 shares of company stock worth $5,567,760. Insiders own 12.28% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the business. Wealth Effects LLC purchased a new stake in SoundHound AI in the 4th quarter worth $357,000. Kraematon Investment Advisors Inc. purchased a new position in shares of SoundHound AI in the fourth quarter worth $355,000. Mitchell Capital Management Co. purchased a new position in shares of SoundHound AI during the fourth quarter worth $2,329,000. SG Americas Securities LLC grew its position in SoundHound AI by 70.2% during the fourth quarter. SG Americas Securities LLC now owns 195,028 shares of the company's stock valued at $3,869,000 after buying an additional 80,448 shares during the period. Finally, SeaCrest Wealth Management LLC acquired a new stake in shares of SoundHound AI in the fourth quarter valued at about $944,000. 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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