SoundHound AI (NASDAQ:SOUN) Trading 4.8% Higher - Should You Buy?

Key Points

• SoundHound AI's shares rose by 4.8% to a trading price of $11.15, despite a significant decrease in trading volume compared to the average.
• Analyst ratings for SoundHound AI have varied, with a consensus rating of "Hold" and a target price of $10.50, while some analysts have set buy ratings and higher targets.
• SoundHound AI reported a revenue of $29.13 million for the last quarter, representing a 151.2% increase year-over-year, but still fell short of analyst expectations.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shot up 4.8% during mid-day trading on Tuesday . The stock traded as high as $11.29 and last traded at $11.15. 13,035,401 shares changed hands during trading, a decline of 67% from the average session volume of 39,113,262 shares. The stock had previously closed at $10.64.

Analyst Ratings Changes

SOUN has been the topic of a number of research reports. Piper Sandler reiterated a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a report on Monday, July 14th. HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a research note on Friday. Wedbush cut their price objective on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating on the stock in a report on Friday, May 9th. Finally, DA Davidson lowered their target price on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a report on Monday, April 14th. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. According to data from MarketBeat, SoundHound AI presently has an average rating of "Moderate Buy" and an average price target of $11.31.

SoundHound AI Price Performance

The stock has a market cap of $5.49 billion, a price-to-earnings ratio of -24.76 and a beta of 2.57. The business's 50 day moving average is $10.69 and its 200 day moving average is $10.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The firm had revenue of $42.68 million for the quarter, compared to analysts' expectations of $32.88 million. SoundHound AI had a negative return on equity of 68.55% and a negative net margin of 184.34%. The company's revenue for the quarter was up 216.3% on a year-over-year basis. During the same period in the prior year, the company earned ($0.11) earnings per share. As a group, analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Keyvan Mohajer sold 254,376 shares of the business's stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $2,380,959.36. Following the sale, the chief executive officer directly owned 1,749,790 shares in the company, valued at $16,378,034.40. The trade was a 12.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Michael Zagorsek sold 117,180 shares of SoundHound AI 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 $1,096,804.80. Following the completion of the transaction, the chief operating officer directly owned 1,346,455 shares in the company, valued at approximately $12,602,818.80. This trade represents a 8.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 961,289 shares of company stock worth $9,247,847. Corporate insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently bought and sold shares of the stock. Carnegie Investment Counsel raised its stake in SoundHound AI by 8.9% during the 1st quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock valued at $8,131,000 after purchasing an additional 87,810 shares during the last quarter. Yarbrough Capital LLC acquired a new position in SoundHound AI during the 1st quarter valued at $1,258,000. Thoroughbred Financial Services LLC raised its stake in SoundHound AI by 38.4% during the 1st quarter. Thoroughbred Financial Services LLC now owns 113,475 shares of the company's stock valued at $921,000 after purchasing an additional 31,500 shares during the last quarter. Deutsche Bank AG increased its holdings in SoundHound AI by 64.2% in the 4th quarter. Deutsche Bank AG now owns 264,559 shares of the company's stock valued at $5,249,000 after buying an additional 103,450 shares during the period. Finally, Victory Capital Management Inc. increased its holdings in SoundHound AI by 308.4% in the 1st quarter. Victory Capital Management Inc. now owns 163,713 shares of the company's stock valued at $1,329,000 after buying an additional 123,623 shares during the period. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

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.