SoundHound AI (NASDAQ:SOUN) Trading Up 4.9% - Here's Why

Key Points

• SoundHound AI's stock rose by 4.9% on Thursday, trading at $12.50 with a market cap of $5.19 billion.
• While some analysts revised their ratings, the company reported 216.3% revenue growth year-over-year despite missing earnings per share estimates.
• Insider trading activity shows a decline in insider ownership, with senior executives recently selling shares valued at over $8.6 million.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) was up 4.9% during trading on Thursday . The stock traded as high as $12.41 and last traded at $12.50. Approximately 14,939,299 shares were traded during trading, a decline of 64% from the average daily volume of 41,435,902 shares. The stock had previously closed at $11.91.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on SOUN. Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and upped their price target for the company from $9.00 to $16.00 in a research note on Monday, August 11th. Piper Sandler restated a "neutral" rating and set a $12.00 price target on shares of SoundHound AI in a research note on Monday, July 14th. Wedbush upped their price target on shares of SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. Finally, HC Wainwright cut their price target on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research note on Monday, May 12th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, SoundHound AI has an average rating of "Moderate Buy" and a consensus target price of $13.36.

SoundHound AI Stock Up 6.9%

The stock has a market cap of $5.19 billion, a price-to-earnings ratio of -20.21 and a beta of 2.57. The stock's 50 day moving average price is $11.87 and its two-hundred day moving average price is $10.44.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The business had revenue of $42.68 million during the quarter, compared to analyst estimates of $32.88 million. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The firm's revenue was up 216.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.11) EPS. SoundHound AI has set its FY 2025 guidance at EPS. On average, analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 2,981 shares of the firm's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $9.68, for a total transaction of $28,856.08. Following the sale, the chief technology officer owned 716,866 shares in the company, valued at approximately $6,939,262.88. This trade represents a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Diana Sroka sold 2,800 shares of the firm's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $9.94, for a total transaction of $27,832.00. Following the sale, the director owned 153,949 shares in the company, valued at approximately $1,530,253.06. This represents a 1.79% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 913,317 shares of company stock valued at $8,679,813. 9.17% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SOUN. Vanguard Group Inc. grew its position in SoundHound AI by 9.5% during the first quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after buying an additional 3,028,281 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in SoundHound AI by 84.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock valued at $40,390,000 after buying an additional 2,274,105 shares during the period. HRT Financial LP acquired a new stake in SoundHound AI during the second quarter valued at $11,914,000. Goldman Sachs Group Inc. grew its position in SoundHound AI by 69.8% during the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after buying an additional 1,085,473 shares during the period. Finally, Nuveen LLC acquired a new stake in shares of SoundHound AI in the first quarter valued at about $7,406,000. Institutional investors and hedge funds own 19.28% of the company's stock.

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.

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