SoundHound AI (NASDAQ:SOUN) Trading Up 2.7% - Here's Why

Key Points

• Shares of SoundHound AI (NASDAQ:SOUN) increased by 2.7% to last trade at $10.67, although trading volume was significantly lower than average.
• Analyst ratings show a mixed outlook with price targets as low as $10.00 and as high as $15.00, resulting in an average target of $10.50.
• Despite a year-over-year revenue growth of 151.2%, the company reported a loss of ($0.06) earnings per share, which was better than the consensus estimate of ($0.09).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price was up 2.7% on Thursday . The company traded as high as $10.96 and last traded at $10.67. Approximately 9,241,254 shares traded hands during trading, a decline of 77% from the average daily volume of 39,383,164 shares. The stock had previously closed at $10.39.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 price target on shares of SoundHound AI in a research note on Monday, July 14th. DA Davidson dropped their price target on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a research note on Monday, April 14th. Wedbush dropped their price target on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. Finally, HC Wainwright dropped their price target on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research note on Monday, May 12th. Five research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat, SoundHound AI presently has an average rating of "Hold" and an average target price of $10.50.

SoundHound AI Trading Down 0.5%

The firm has a 50 day moving average of $10.65 and a 200-day moving average of $10.66. The company has a market cap of $4.13 billion, a P/E ratio of -18.81 and a beta of 2.59.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.09) by $0.03. SoundHound AI had a negative return on equity of 68.55% and a negative net margin of 184.34%. The business had revenue of $29.13 million for the quarter, compared to the consensus estimate of $30.38 million. During the same quarter in the previous year, the company posted ($0.07) EPS. The company's revenue was up 151.2% compared to the same quarter last year. Equities analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity

In other news, insider James Ming Hom sold 79,530 shares of the business's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $744,400.80. Following the transaction, the insider owned 637,560 shares of the company's stock, valued at approximately $5,967,561.60. The trade was a 11.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Majid Emami sold 132,352 shares of the business's stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $10.04, for a total value of $1,328,814.08. Following the transaction, the vice president directly owned 537,482 shares in the company, valued at approximately $5,396,319.28. This represents a 19.76% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 961,289 shares of company stock worth $9,247,847. Company insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently modified their holdings of the stock. Orion Capital Management LLC purchased a new position in SoundHound AI during the 4th quarter valued at $30,000. AlphaQuest LLC purchased a new stake in SoundHound AI in the first quarter valued at about $32,000. Golden State Wealth Management LLC raised its stake in SoundHound AI by 100.0% in the first quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company's stock valued at $34,000 after buying an additional 2,115 shares during the last quarter. Kozak & Associates Inc. increased its holdings in shares of SoundHound AI by 6,249.0% in the second quarter. Kozak & Associates Inc. now owns 3,238 shares of the company's stock valued at $35,000 after purchasing an additional 3,187 shares during the period. Finally, Quarry LP increased its holdings in shares of SoundHound AI by 1,552.7% in the first quarter. Quarry LP now owns 5,272 shares of the company's stock valued at $43,000 after purchasing an additional 4,953 shares during the period. 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.