SoundHound AI (NASDAQ:SOUN) Trading Up 2.4% - Time to Buy?

Key Points

• SoundHound AI shares rose 2.4% on Wednesday, trading as high as $6.82 before closing at $6.80, with volume roughly in line with its average daily trading level.
• Analysts remain mixed but generally positive: the stock has a Moderate Buy consensus rating and an average price target of $14.93, though one firm recently reiterated a sell rating.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a quarterly EPS miss and ongoing losses, with insiders also trimming holdings recently.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shot up 2.4% during trading on Wednesday . The company traded as high as $6.82 and last traded at $6.80. Approximately 27,237,208 shares changed hands during mid-day trading, a decline of 0% from the average session volume of 27,348,912 shares. The stock had previously closed at $6.64.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on SOUN. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. DA Davidson restated a "buy" rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Performance

The stock has a fifty day simple moving average of $7.71 and a 200 day simple moving average of $8.30. The firm has a market cap of $2.94 billion, a P/E ratio of -14.47 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The business had revenue of $44.20 million for the quarter, compared to analysts' expectations of $42.56 million. During the same period last year, the business earned ($0.06) earnings per share. The company's quarterly revenue was up 51.7% on a year-over-year basis. Research analysts predict that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Activity

In related news, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction that occurred 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 transaction, the chief operating officer owned 1,669,497 shares in the company, valued at $12,454,447.62. This represents a 3.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the sale, the chief technology officer owned 502,290 shares in the company, valued at $3,747,083.40. This represents a 3.61% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently modified their holdings of SOUN. Royal Bank of Canada grew its holdings in shares of SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company's stock worth $1,301,000 after acquiring an additional 66,714 shares during the period. Integrated Wealth Concepts LLC lifted its holdings in SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock valued at $119,000 after acquiring an additional 1,201 shares during the period. NewEdge Advisors LLC boosted its position in SoundHound AI by 12.9% in the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company's stock worth $333,000 after purchasing an additional 4,692 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock worth $21,434,000 after purchasing an additional 1,085,473 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of SoundHound AI by 10.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company's stock valued at $5,620,000 after purchasing an additional 63,398 shares during the period. 19.28% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.