SoundHound AI (NASDAQ:SOUN) Trading 6.5% Higher - Here's What Happened

Key Points

• SoundHound AI shares increased by 6.5% on Monday, reaching a peak of $17.65, with trading volume nearly doubling the average daily volume.
• Analysts have mixed opinions on SoundHound AI, with one firm issuing a "Strong Buy" rating while others maintain "Buy" or "Hold" ratings, resulting in a consensus rating of "Moderate Buy."
• The company reported a quarterly revenue of $42.68 million, significantly exceeding expectations, although it missed earnings per share estimates by $0.13, posting a loss of ($0.19).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) traded up 6.5% during trading on Monday . The stock traded as high as $17.65 and last traded at $17.31. 89,570,815 shares changed hands during trading, an increase of 99% from the average session volume of 45,070,762 shares. The stock had previously closed at $16.25.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Oppenheimer assumed coverage on SoundHound AI in a report on Thursday, September 11th. They set a "market perform" rating for the company. Wall Street Zen downgraded SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Northland Capmk raised SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. HC Wainwright reaffirmed a "buy" rating and set a $18.00 target price on shares of SoundHound AI in a report on Wednesday, September 17th. Finally, Wedbush reaffirmed an "outperform" rating and set a $16.00 target price on shares of SoundHound AI in a report on Thursday, September 11th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $14.36.

SoundHound AI Trading Up 5.3%

The firm has a 50-day simple moving average of $13.15 and a two-hundred day simple moving average of $10.84. The company has a market capitalization of $7.43 billion, a price-to-earnings ratio of -28.94 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $32.88 million. During the same period in the previous year, the company earned ($0.11) earnings per share. The business'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. On average, sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Institutional Trading of SoundHound AI

Several large investors have recently made changes to their positions in SOUN. Vanguard Group Inc. increased its holdings in shares of SoundHound AI by 9.5% during the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after acquiring an additional 3,028,281 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of SoundHound AI by 8.3% during the 2nd quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company's stock valued at $94,759,000 after acquiring an additional 679,436 shares during the last quarter. State Street Corp increased its holdings in shares of SoundHound AI by 9.1% during the 2nd quarter. State Street Corp now owns 8,476,348 shares of the company's stock valued at $90,951,000 after acquiring an additional 708,369 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of SoundHound AI by 1.0% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,024,632 shares of the company's stock valued at $53,906,000 after acquiring an additional 50,904 shares during the last quarter. Finally, Northern Trust Corp increased its holdings in shares of SoundHound AI by 2.5% during the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after acquiring an additional 72,766 shares during the last quarter. Institutional investors 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.