SoundHound AI (NASDAQ:SOUN) Trading Up 3.7% - Still a Buy?

Key Points

• SoundHound AI's stock price increased by 3.7%, trading at approximately $18.88 after reaching a high of $20.08, with trading volume up 114% compared to its average daily volume.
• Analyst ratings for SoundHound AI are mixed, with Northland Securities upgrading the stock to "outperform" but Wall Street Zen downgrading it to "sell," resulting in a consensus rating of "Moderate Buy" and an average target price of $14.36.
• The company reported a Q2 revenue increase of 216.3% year-over-year despite missing earnings estimates, revealing a loss of ($0.19) EPS compared to a consensus of ($0.06).

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were up 3.7% during mid-day trading on Wednesday . The stock traded as high as $20.08 and last traded at $18.88. Approximately 99,745,475 shares traded hands during trading, an increase of 114% from the average daily volume of 46,534,805 shares. The stock had previously closed at $18.20.

Analyst Ratings Changes

Several brokerages have recently commented on SOUN. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a research report on Friday, August 8th. Wall Street Zen lowered SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Wedbush restated an "outperform" rating and set a $16.00 target price on shares of SoundHound AI in a report on Thursday, September 11th. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 8th. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and boosted their price target for the company from $9.00 to $16.00 in a research note on Monday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $14.36.

SoundHound AI Stock Performance

The firm's 50-day simple moving average is $14.32 and its 200 day simple moving average is $11.42. The company has a market cap of $7.70 billion, a P/E ratio of -29.97 and a beta of 2.60.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The firm had revenue of $42.68 million for the quarter, compared to the consensus estimate of $32.88 million. During the same quarter last year, the company posted ($0.11) EPS. SoundHound AI's revenue for the quarter was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other news, insider James Ming Hom sold 42,119 shares of the firm's stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total transaction of $673,904.00. Following the transaction, the insider directly owned 845,441 shares of the company's stock, valued at approximately $13,527,056. This trade represents a 4.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Keyvan Mohajer sold 138,523 shares of the firm's stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $2,216,368.00. Following the transaction, the chief executive officer directly owned 2,461,267 shares in the company, valued at $39,380,272. This represents a 5.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 495,196 shares of company stock valued at $8,068,135. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in SOUN. GAMMA Investing LLC increased its stake in SoundHound AI by 1,477.7% in the first quarter. GAMMA Investing LLC now owns 11,912 shares of the company's stock valued at $97,000 after acquiring an additional 11,157 shares during the last quarter. Rhumbline Advisers boosted its position in SoundHound AI by 8.9% in the first quarter. Rhumbline Advisers now owns 457,107 shares of the company's stock valued at $3,712,000 after buying an additional 37,431 shares in the last quarter. NBC Securities Inc. boosted its position in SoundHound AI by 127,900.0% in the first quarter. NBC Securities Inc. now owns 7,680 shares of the company's stock valued at $62,000 after buying an additional 7,674 shares in the last quarter. Patriot Financial Group Insurance Agency LLC boosted its position in SoundHound AI by 59.2% in the first quarter. Patriot Financial Group Insurance Agency LLC now owns 47,675 shares of the company's stock valued at $387,000 after buying an additional 17,722 shares in the last quarter. Finally, Wealthcare Advisory Partners LLC boosted its position in SoundHound AI by 30.3% in the first quarter. Wealthcare Advisory Partners LLC now owns 30,484 shares of the company's stock valued at $248,000 after buying an additional 7,095 shares in the last quarter. 19.28% of the stock is owned by institutional investors.

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.

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