Investors Purchase Large Volume of Call Options on SoundHound AI (NASDAQ:SOUN)

Key Points

• SoundHound AI saw a significant uptick in options trading, with traders purchasing 285,314 call options, an increase of 106% compared to average daily volume.
• Analysts have given SoundHound AI an average rating of "Moderate Buy" with a consensus target price of $14.36, following several upgrades from different firms.
• SoundHound AI reported a revenue increase of 216.3% year-over-year, although it missed EPS estimates for the last quarter with a reported ($0.19)

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) saw some unusual options trading on Friday. Traders purchased 285,314 call options on the stock. This is an increase of approximately 106% compared to the typical volume of 138,428 call options.

Wall Street Analyst Weigh In

SOUN has been the subject of several recent research reports. Northland Securities raised shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a report on Friday, August 8th. Northland Capmk raised shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. Piper Sandler reissued a "neutral" rating and issued a $12.00 price target on shares of SoundHound AI in a research note on Monday, July 14th. Oppenheimer began coverage on SoundHound AI in a research report on Thursday, September 11th. They issued a "market perform" rating for the company. Finally, Wall Street Zen cut SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.36.

SoundHound AI Trading Down 0.3%

SOUN traded down $0.06 during trading on Monday, hitting $16.19. 21,209,137 shares of the company's stock were exchanged, compared to its average volume of 44,666,492. SoundHound AI has a 1 year low of $4.45 and a 1 year high of $24.98. The stock has a 50 day moving average price of $13.03 and a 200 day moving average price of $10.79. The firm has a market cap of $6.60 billion, a P/E ratio of -25.70 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its 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 analyst estimates of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. SoundHound AI's revenue for the quarter was up 216.3% compared to the same quarter last year. During the same period last year, the firm earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. Analysts forecast that SoundHound AI will post -0.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other SoundHound AI news, Director Diana Sroka sold 2,800 shares of the company's stock in a transaction that occurred 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 completion of the sale, the director directly owned 153,949 shares of the company's stock, valued at approximately $1,530,253.06. This represents a 1.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Majid Emami sold 60,295 shares of the stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $10.00, for a total transaction of $602,950.00. Following the sale, the vice president directly owned 477,657 shares of the company's stock, valued at approximately $4,776,570. This trade represents a 11.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 66,076 shares of company stock valued at $659,638 over the last 90 days. Insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of SOUN. Vanguard Group Inc. increased its position in shares of SoundHound AI by 9.5% in the first 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 boosted its position 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 worth $94,759,000 after acquiring an additional 679,436 shares in the last quarter. State Street Corp boosted 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 in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in 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 worth $53,906,000 after buying an additional 50,904 shares during the period. Finally, Northern Trust Corp lifted its stake in shares of SoundHound AI by 2.5% in the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after purchasing an additional 72,766 shares during the period. 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.