SoundHound AI (NASDAQ:SOUN) Stock Price Up 5% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price shot up 5% on Friday . The stock traded as high as $7.40 and last traded at $7.32. Approximately 28,902,501 shares changed hands during mid-day trading, an increase of 0% from the average daily volume of 28,833,840 shares. The stock had previously closed at $6.97.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on SOUN shares. Wall Street Zen upgraded SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 15th. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. Piper Sandler dropped their target price on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. Finally, LADENBURG THALM/SH SH upgraded 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 assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $13.60.

SoundHound AI Price Performance

The stock has a 50 day moving average of $6.70 and a 200 day moving average of $7.41. The firm has a market cap of $3.25 billion, a P/E ratio of -19.26 and a beta of 2.64.

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

Insider Activity at SoundHound AI

In related news, insider James Ming Hom sold 28,843 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 value of $215,168.78. Following the completion of the sale, the insider owned 743,521 shares in the company, valued at $5,546,666.66. The trade was a 3.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through 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 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 value of $484,855.24. Following the completion of the sale, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at $12,454,447.62. The trade was a 3.75% decrease in their position. 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 a total of 268,022 shares of company stock worth $1,999,444 in the last quarter. 8.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently made changes to their positions in the business. Hollencrest Capital Management boosted its stake in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after purchasing an additional 2,400 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in 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 purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC raised its position in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after purchasing an additional 1,544 shares during the period. Danske Bank A S bought a new stake in SoundHound AI in the third quarter worth $26,000. Finally, SHP Wealth Management bought a new stake in SoundHound AI in the fourth quarter worth $27,000. 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.