SoundHound AI (NASDAQ:SOUN) Trading Up 2.4% - Still a Buy?

Key Points

• SoundHound AI shares rose 2.4% to $7.16 on heavier-than-average volume, while the stock remains below its 200-day moving average of $7.44. Its market capitalization is approximately $3.18 billion.
• The company beat quarterly expectations, reporting an adjusted loss of $0.02 per share versus estimates of $0.13 and revenue of $61.9 million versus $52.38 million. Revenue increased 45% year over year, though profitability remains weak with a negative net margin.
• Analyst sentiment is mixed but leans positive: SoundHound has a consensus “Moderate Buy” rating and a $13.60 price target, despite recent target cuts and sell ratings. Insiders sold shares primarily to cover tax obligations, while institutional investors increased their positions.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were up 2.4% on Wednesday . The company traded as high as $7.24 and last traded at $7.16. Approximately 36,016,882 shares traded hands during trading, an increase of 25% from the average session volume of 28,886,861 shares. The stock had previously closed at $6.99.

Wall Street Analyst Weigh In

Several equities analysts have commented on SOUN shares. Weiss Ratings reiterated a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. DA Davidson reduced their price target on SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. Piper Sandler cut their target price on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. Finally, Wall Street Zen raised shares of SoundHound AI from a "strong sell" rating to a "sell" rating in a report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, SoundHound AI currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.60.

SoundHound AI Trading Up 2.4%

The firm has a market capitalization of $3.18 billion, a P/E ratio of -18.84 and a beta of 2.64. The company has a 50-day moving average of $6.70 and a 200-day moving average of $7.44.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating analysts' consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same quarter in the previous year, the company posted ($0.19) EPS. The business's revenue was up 45.0% on a year-over-year basis. Research analysts predict that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insiders Place Their Bets

In other news, insider James Ming Hom sold 28,843 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the insider owned 743,521 shares in the company, valued at approximately $5,546,666.66. The trade was a 3.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $484,855.24. Following the completion of the sale, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 268,022 shares of company stock valued at $1,999,444 over the last three months. Insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently bought and sold shares of SOUN. Handelsbanken Fonder AB boosted its position in SoundHound AI by 17.4% during the second quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company's stock valued at $802,000 after acquiring an additional 18,400 shares during the last quarter. Focus Financial Network Inc. raised its position in shares of SoundHound AI by 21.4% in the 2nd quarter. Focus Financial Network Inc. now owns 48,229 shares of the company's stock worth $312,000 after acquiring an additional 8,516 shares in the last quarter. IFC & Insurance Marketing Inc. lifted its stake in shares of SoundHound AI by 17.9% in the 2nd quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company's stock valued at $273,000 after purchasing an additional 6,427 shares during the period. Hennion & Walsh Asset Management Inc. lifted its stake in shares of SoundHound AI by 19.2% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company's stock valued at $768,000 after purchasing an additional 19,133 shares during the period. Finally, Empowered Funds LLC boosted its position 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 valued at $95,000 after purchasing an additional 2,277 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Company Profile

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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