SoundHound AI (NASDAQ:SOUN) Stock Price Up 4.1% – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) was up 4.1% during trading on Monday . The stock traded as high as $6.73 and last traded at $6.41. Approximately 42,752,863 shares were traded during trading, an increase of 52% from the average session volume of 28,126,789 shares. The stock had previously closed at $6.16.

Wall Street Analysts Forecast Growth

SOUN has been the subject of a number of research reports. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. DA Davidson reiterated a “buy” rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Up 4.1%

The business’s 50-day simple moving average is $7.17 and its two-hundred day simple moving average is $7.92. The firm has a market cap of $2.77 billion, a price-to-earnings ratio of -13.64 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The business had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. SoundHound AI’s revenue for the quarter was up 51.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.06) EPS. On average, analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 126,540 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. The trade was a 6.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the insider owned 743,521 shares of the company’s stock, valued at $5,546,666.66. This trade represents a 3.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 268,022 shares of company stock worth $1,999,444 in the last 90 days. 8.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SOUN. EP Wealth Advisors LLC lifted its position in SoundHound AI by 5.3% during the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after buying an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. increased its stake in shares of SoundHound AI by 2.7% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after acquiring an additional 830 shares during the last quarter. Clear Creek Financial Management LLC increased its stake in shares of SoundHound AI by 1.6% in the 4th quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company’s stock worth $579,000 after acquiring an additional 941 shares during the last quarter. Parallel Advisors LLC raised its holdings in shares of SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after acquiring an additional 960 shares during the period. Finally, Allspring Global Investments Holdings LLC boosted its position in shares of SoundHound AI by 5.5% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 18,590 shares of the company’s stock valued at $197,000 after acquiring an additional 964 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.