Stock Traders Buy High Volume of Call Options on SoundHound AI (NASDAQ:SOUN)

Key Points

• Stock traders purchased 232,767 call options for SoundHound AI, marking a 147% increase compared to its average daily volume.
• SoundHound AI shares increased by $3.15 to reach a trading price of $13.87, with an impressive trading volume of nearly 95.82 million shares on the same day.
• The company reported a significant 216.3% year-over-year revenue growth with $42.68 million in revenue, despite missing the earnings per share estimate by ($0.13).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) saw unusually large options trading on Friday. Stock traders bought 232,767 call options on the stock. Thisrepresentsanincreaseof147% compared to the average daily volume of 94,303 call options.

SoundHound AI Stock Performance

Shares of NASDAQ SOUN traded up $3.15 during trading on Friday, hitting $13.87. The company had a trading volume of 95,817,499 shares, compared to its average volume of 39,507,930. SoundHound AI has a 12 month low of $4.32 and a 12 month high of $24.98. The firm has a market capitalization of $5.57 billion, a P/E ratio of -25.36 and a beta of 2.57. The stock has a 50 day simple moving average of $10.69 and a 200 day simple moving average of $10.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released 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). SoundHound AI had a negative return on equity of 68.55% and a negative net margin of 184.34%. The firm had revenue of $42.68 million during the quarter, compared to analysts' expectations of $32.88 million. During the same period in the prior year, the company posted ($0.11) earnings per share. The company's revenue was up 216.3% compared to the same quarter last year. As a group, analysts predict that SoundHound AI will post -0.38 EPS for the current year.

Analyst Ratings Changes

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

Insider Buying and Selling

In other news, insider James Ming Hom sold 79,530 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 transaction of $744,400.80. Following the completion of the transaction, the insider directly owned 637,560 shares of the company's stock, valued at $5,967,561.60. The trade was a 11.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Diana Sroka sold 2,800 shares of the 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 transaction, the director owned 153,949 shares in the company, valued at approximately $1,530,253.06. This trade represents a 1.79% decrease in their position. The disclosure for this sale can be found here. Insiders sold 961,289 shares of company stock worth $9,247,847 in the last three months. 9.17% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of the company. Orion Capital Management LLC purchased a new stake in SoundHound AI in the 4th quarter worth $30,000. AlphaQuest LLC purchased a new stake in shares of SoundHound AI during the first quarter worth about $32,000. Huntington National Bank grew its position in shares of SoundHound AI by 48.8% during the second quarter. Huntington National Bank now owns 3,050 shares of the company's stock worth $33,000 after purchasing an additional 1,000 shares in the last quarter. Golden State Wealth Management LLC lifted its holdings in SoundHound AI by 100.0% in the 1st quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company's stock worth $34,000 after purchasing an additional 2,115 shares in the last quarter. Finally, Kozak & Associates Inc. boosted its stake in SoundHound AI by 6,249.0% in the 2nd quarter. Kozak & Associates Inc. now owns 3,238 shares of the company's stock worth $35,000 after purchasing an additional 3,187 shares during the period. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

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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