SoundHound AI (NASDAQ:SOUN) Trading Up 3.7% - Here's What Happened

Key Points

• SoundHound AI shares rose 3.7% on Thursday, trading as high as $7.02 after closing at $6.75 the prior day. Volume was slightly below average, with about 27.0 million shares changing hands.
• Analyst sentiment remains mixed but generally constructive: SoundHound has a consensus rating of “Moderate Buy” and an average price target of $14.93. Recent updates included an upgrade to strong-buy from Ladenburg Thalm/SH SH, while others trimmed targets.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, though EPS missed expectations by one cent. Insider selling was also notable, with executives selling shares in recent months.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares traded up 3.7% during mid-day trading on Thursday . The company traded as high as $7.02 and last traded at $7.00. 27,025,042 shares changed hands during trading, a decline of 2% from the average session volume of 27,491,104 shares. The stock had previously closed at $6.75.

Wall Street Analyst Weigh In

SOUN has been the subject of a number of recent research reports. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. DA Davidson reaffirmed a "buy" rating and issued a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, Piper Sandler reiterated a "neutral" rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Price Performance

The company has a 50 day moving average price of $7.91 and a 200 day moving average price of $8.98. The firm has a market cap of $3.03 billion, a PE ratio of -14.89 and a beta of 2.56.

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

Insiders Place Their Bets

In related news, COO Michael Zagorsek sold 52,968 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 value of $359,652.72. Following the completion of the transaction, the chief operating officer directly owned 1,734,491 shares of the company's stock, valued at $11,777,193.89. This trade represents a 2.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider James Ming Hom sold 31,019 shares of the firm's stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the transaction, the insider owned 772,364 shares of the company's stock, valued at approximately $5,244,351.56. This represents a 3.86% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 307,973 shares of company stock worth $2,091,110. Corporate insiders own 8.84% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

A number of large investors have recently bought and sold shares of SOUN. EP Wealth Advisors LLC raised its holdings in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after acquiring an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. boosted its stake in shares of SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock valued at $513,000 after acquiring an additional 830 shares during the last quarter. Insigneo Advisory Services LLC increased its position in SoundHound AI by 7.4% during the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company's stock worth $200,000 after purchasing an additional 858 shares in the last quarter. Clear Creek Financial Management LLC increased its position in SoundHound AI by 1.6% during the 4th quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company's stock worth $579,000 after purchasing an additional 941 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its stake in SoundHound AI by 15.5% in the 3rd quarter. PNC Financial Services Group Inc. now owns 7,127 shares of the company's stock valued at $115,000 after purchasing an additional 956 shares during 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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