SoundHound AI Sees Unusually High Options Volume (NASDAQ:SOUN)

Key Points

• SoundHound AI experienced a significant spike in options trading, with 224,764 call options purchased, an increase of 87% from the average volume.
• The company's stock price rose to $13.28, and it reported a 216.3% year-over-year revenue increase of $42.68 million, although it posted a loss of ($0.19) EPS.
• Several analysts have altered their ratings on SoundHound AI, with Northland Capital Markets upgrading it to a "strong-buy" while Wall Street Zen downgraded to "sell"; the stock has a current average target price of $13.36.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) was the recipient of some unusual options trading on Thursday. Investors purchased 224,764 call options on the company. Thisisanincreaseof87% compared to the average volume of 120,013 call options.

SoundHound AI Stock Performance

Shares of SOUN traded up $0.54 on Thursday, hitting $13.28. 80,622,613 shares of the stock traded hands, compared to its average volume of 42,581,719. SoundHound AI has a one year low of $4.32 and a one year high of $24.98. The company has a market capitalization of $5.41 billion, a PE ratio of -21.08 and a beta of 2.58. The business has a 50 day simple moving average of $12.21 and a 200 day simple moving average of $10.40.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.19) 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 company had revenue of $42.68 million during the quarter, compared to the consensus estimate of $32.88 million. During the same period last year, the firm posted ($0.11) EPS. The company'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, equities analysts expect that SoundHound AI will post -0.38 earnings per share for the current year.

Analysts Set New Price Targets

SOUN has been the subject of a number of analyst reports. Northland Capmk upgraded shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Piper Sandler restated a "neutral" rating and issued a $12.00 price objective on shares of SoundHound AI in a report on Monday, July 14th. HC Wainwright lowered their price objective on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $9.00 to $16.00 in a report on Monday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $13.36.

Insider Activity

In other news, CFO Nitesh Sharan sold 111,111 shares of the stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the completion of the sale, the chief financial officer directly owned 1,442,900 shares in the company, valued at approximately $13,505,544. This represents a 7.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Michael Zagorsek sold 117,180 shares of the stock in a transaction dated 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 sale, the chief operating officer owned 1,346,455 shares of the company's stock, valued at approximately $12,602,818.80. This represents a 8.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 913,317 shares of company stock valued at $8,679,813. Company insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the business. Orion Capital Management LLC bought a new stake in shares of SoundHound AI during the 4th quarter valued at $30,000. Northwestern Mutual Wealth Management Co. grew its position in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after acquiring an additional 1,060 shares during the period. Advisors Asset Management Inc. grew its position in shares of SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock valued at $27,000 after acquiring an additional 1,023 shares during the period. Huntington National Bank grew its position in shares of SoundHound AI by 48.8% during the 2nd quarter. Huntington National Bank now owns 3,050 shares of the company's stock valued at $33,000 after acquiring an additional 1,000 shares during the period. Finally, Kozak & Associates Inc. lifted its stake in shares of SoundHound AI by 6,249.0% during the 2nd quarter. Kozak & Associates Inc. now owns 3,238 shares of the company's stock valued at $35,000 after buying an additional 3,187 shares in 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.

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