SoundHound AI (NASDAQ:SOUN) Shares Up 1.4% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price shot up 1.4% during mid-day trading on Monday . The company traded as high as $7.65 and last traded at $7.49. 21,925,263 shares changed hands during trading, a decline of 20% from the average session volume of 27,522,338 shares. The stock had previously closed at $7.39.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on SOUN. Piper Sandler restated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. HC Wainwright dropped their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research note on Monday, March 2nd. Finally, DA Davidson restated a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Trading Up 1.4%

The firm has a 50 day simple moving average of $7.84 and a two-hundred day simple moving average of $9.07. The company has a market capitalization of $3.24 billion, a PE ratio of -15.94 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last announced its 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). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. During the same quarter last year, the business posted ($0.06) earnings per share. The company’s revenue for the quarter was up 51.7% compared to the same quarter last year. Research analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, COO Michael Zagorsek sold 52,968 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the completion of the sale, the chief operating officer directly owned 1,734,491 shares of the company’s stock, valued at $11,777,193.89. This trade represents a 2.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider James Ming Hom sold 31,019 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the sale, the insider directly owned 772,364 shares of the company’s stock, valued at $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 307,973 shares of company stock worth $2,091,110. Corporate insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after purchasing an additional 1,909,868 shares during the last quarter. Rakuten Securities Inc. raised its holdings in SoundHound AI by 877.9% during the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock worth $3,326,000 after purchasing an additional 299,492 shares during the last quarter. Clear Street Group Inc. acquired a new position in SoundHound AI during the third quarter worth $12,944,000. UBS Group AG raised its holdings in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after purchasing an additional 2,676,707 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in SoundHound AI by 140.5% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after purchasing an additional 155,743 shares during the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

About SoundHound AI

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.