SoundHound AI (NASDAQ:SOUN) Shares Up 3% – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded up 3% during trading on Thursday . The company traded as high as $7.39 and last traded at $7.22. Approximately 28,120,899 shares changed hands during trading, a decline of 2% from the average daily volume of 28,689,791 shares. The stock had previously closed at $7.01.

Analyst Ratings Changes

Several brokerages have recently weighed in on SOUN. Piper Sandler decreased their target price on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. DA Davidson reduced their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Wall Street Zen upgraded SoundHound AI from a “strong sell” rating to a “sell” rating in a report on Saturday, August 15th. Finally, LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $13.60.

SoundHound AI Trading Up 3.0%

The business’s 50-day simple moving average is $6.71 and its two-hundred day simple moving average is $7.39. The company has a market capitalization of $3.21 billion, a PE ratio of -19.00 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. The business had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The company’s revenue for the quarter was up 45.0% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.19) earnings per share. On average, analysts forecast that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insider Activity at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of the company’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 value of $943,988.40. Following the transaction, the chief executive officer directly owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. This represents a 6.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $484,855.24. Following the transaction, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at approximately $12,454,447.62. This trade represents a 3.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 268,022 shares of company stock worth $1,999,444 over the last ninety days. Company insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SOUN. EP Wealth Advisors LLC lifted its stake in SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after buying an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. boosted its holdings in shares of SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after acquiring an additional 830 shares during the period. Parallel Advisors LLC grew its position in shares of SoundHound AI by 42.8% during the third 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 last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after acquiring an additional 1,060 shares during the period. Finally, Integrated Wealth Concepts LLC increased its holdings in shares of SoundHound AI by 8.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after acquiring an additional 1,201 shares during the period. 19.28% of the stock is currently owned by institutional investors.

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.