SoundHound AI (NASDAQ:SOUN) Trading Up 3.2% - Should You Buy?

Key Points

• Stock movement: Shares rose 3.2% to $7.96 on Thursday with ~19.99M shares traded (down 25% vs. average); market cap is about $3.37B and the stock has a negative P/E (-159.17) with a 50‑day SMA of $7.48 vs a 200‑day SMA of $10.56.
• Analyst sentiment: The consensus is a Moderate Buy with an average price target of $14.93 (1 Strong Buy, 5 Buy, 3 Hold, 1 Sell), though several firms have trimmed targets recently.
• Financials and insiders: Latest quarter EPS met estimates at ($0.02) while revenue rose 59.4% YoY to $55.06M, but the company remains unprofitable with negative margins and a consensus forecast of -0.34 EPS for the year; insiders have sold ~307,973 shares (~$2.09M) in the last 90 days.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) was up 3.2% on Thursday . The company traded as high as $8.00 and last traded at $7.96. Approximately 19,998,062 shares changed hands during trading, a decline of 25% from the average daily volume of 26,497,627 shares. The stock had previously closed at $7.71.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Piper Sandler reaffirmed a "neutral" rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. HC Wainwright cut 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. Zacks Research upgraded SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. DA Davidson restated a "buy" rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of SoundHound AI in a research note on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $14.93.

SoundHound AI Stock Performance

The company has a market cap of $3.37 billion, a price-to-earnings ratio of -159.17 and a beta of 2.71. The business has a 50-day simple moving average of $7.48 and a 200-day simple moving average of $10.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.02). The company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.SoundHound AI's revenue for the quarter was up 59.4% compared to the same quarter last year. During the same quarter last year, the company earned ($0.05) EPS. Research analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 52,968 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $359,652.72. Following the sale, the chief operating officer owned 1,734,491 shares of the company's stock, valued at approximately $11,777,193.89. This trade represents a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider James Ming Hom sold 31,019 shares of the firm's stock in a transaction that occurred 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 insider directly owned 772,364 shares in the company, valued at approximately $5,244,351.56. The trade was a 3.86% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. boosted its stake in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after acquiring an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC increased its position in shares of SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after purchasing an additional 1,544 shares in the last quarter. Danske Bank A S purchased a new stake in shares of SoundHound AI in the 3rd quarter valued at about $26,000. SHP Wealth Management purchased a new stake in shares of SoundHound AI in the 4th quarter valued at about $27,000. Finally, Financial Consulate Inc. acquired a new stake in shares of SoundHound AI in the 3rd quarter valued at about $32,000. 19.28% of the stock is owned by hedge funds and other 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.

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