SoundHound AI Target of Unusually Large Options Trading (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) saw some unusual options trading on Tuesday. Investors acquired 170,683 call options on the stock. This represents an increase of 58% compared to the average volume of 108,189 call options.

SoundHound AI Stock Down 4.1%

SoundHound AI stock traded down $0.43 during trading hours on Friday, reaching $10.10. The stock had a trading volume of 26,470,348 shares, compared to its average volume of 38,374,303. The company has a market cap of $4.06 billion, a price-to-earnings ratio of -28.06 and a beta of 2.71. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58. The business's 50 day moving average price is $9.15 and its 200-day moving average price is $11.75. SoundHound AI has a 52 week low of $3.82 and a 52 week high of $24.98.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.03. The firm had revenue of $29.13 million during the quarter, compared to analysts' expectations of $30.38 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. The business's revenue for the quarter was up 151.2% on a year-over-year basis. During the same quarter last year, the firm earned ($0.07) earnings per share. Sell-side analysts anticipate that SoundHound AI will post -0.38 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In related news, insider James Ming Hom sold 28,388 shares of the stock in a transaction on Thursday, March 20th. The stock was sold at an average price of $9.90, for a total value of $281,041.20. Following the transaction, the insider now directly owns 689,652 shares of the company's stock, valued at approximately $6,827,554.80. This trade represents a 3.95% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CTO Timothy Stonehocker sold 3,333 shares of the business's stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $10.08, for a total value of $33,596.64. Following the transaction, the chief technology officer now owns 765,534 shares in the company, valued at approximately $7,716,582.72. This represents a 0.43% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 548,537 shares of company stock worth $5,567,760. 12.28% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wealth Effects LLC purchased a new position in SoundHound AI during the fourth quarter worth about $357,000. Mitchell Capital Management Co. purchased a new stake in shares of SoundHound AI during the fourth quarter worth about $2,329,000. UNICOM Systems Inc. acquired a new position in SoundHound AI in the 4th quarter valued at $4,662,000. Patriot Financial Group Insurance Agency LLC acquired a new position in SoundHound AI in the fourth quarter valued at $594,000. Finally, Deutsche Bank AG grew its holdings in SoundHound AI by 64.2% in the fourth quarter. Deutsche Bank AG now owns 264,559 shares of the company's stock valued at $5,249,000 after purchasing an additional 103,450 shares during the period. Institutional investors and hedge funds own 19.28% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on SOUN shares. Wedbush dropped their target price on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating on the stock in a research report on Friday, May 9th. Cantor Fitzgerald upgraded SoundHound AI to a "hold" rating in a research note on Monday, February 24th. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Piper Sandler started coverage on SoundHound AI in a report on Tuesday. They set an "overweight" rating and a $12.00 target price on the stock. Finally, DA Davidson cut their price target on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a research note on Monday, April 14th. Four equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $10.50.

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.