SoundHound AI (NASDAQ:SOUN) Trading 2.3% Higher – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) was up 2.3% during mid-day trading on Monday . The stock traded as high as $11.53 and last traded at $11.27. Approximately 17,431,280 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 43,641,754 shares. The stock had previously closed at $11.02.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on SOUN shares. Oppenheimer began coverage on shares of SoundHound AI in a report on Thursday, September 11th. They issued a “market perform” rating on the stock. Piper Sandler raised their price target on SoundHound AI from $12.00 to $15.00 and gave the stock a “neutral” rating in a research report on Friday, November 7th. HC Wainwright upped their price objective on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a report on Thursday, October 16th. Wedbush reissued an “outperform” rating and issued a $16.00 target price on shares of SoundHound AI in a research note on Thursday, September 11th. Finally, DA Davidson restated a “buy” rating and set a $17.00 target price on shares of SoundHound AI in a report on Tuesday, November 18th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, SoundHound AI has a consensus rating of “Moderate Buy” and an average target price of $17.07.

SoundHound AI Stock Up 2.3%

The stock has a market capitalization of $4.73 billion, a P/E ratio of -13.42 and a beta of 2.63. The company has a fifty day simple moving average of $14.31 and a two-hundred day simple moving average of $13.43.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The company had revenue of $42.05 million for the quarter, compared to analyst estimates of $40.48 million. During the same quarter last year, the firm posted ($0.04) earnings per share. SoundHound AI’s revenue was up 67.6% compared to the same quarter last year. As a group, equities analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 118,654 shares of the company’s stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $2,373,080.00. Following the completion of the transaction, the chief executive officer directly owned 2,342,613 shares of the company’s stock, valued at approximately $46,852,260. This represents a 4.82% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Timothy Stonehocker sold 70,524 shares of the stock in a transaction dated Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $1,410,480.00. Following the transaction, the chief technology officer owned 606,525 shares of the company’s stock, valued at approximately $12,130,500. This trade represents a 10.42% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 330,496 shares of company stock worth $6,591,406. Corporate insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently bought and sold shares of SOUN. Sound Income Strategies LLC lifted its stake in SoundHound AI by 37.3% in the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock valued at $34,000 after acquiring an additional 575 shares in the last quarter. Investors Research Corp raised its holdings in shares of SoundHound AI by 62.4% in the third quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after purchasing an additional 700 shares during the last quarter. EP Wealth Advisors LLC lifted its position in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after purchasing an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. boosted its holdings in SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after purchasing an additional 830 shares during the last quarter. Finally, Insigneo Advisory Services LLC boosted its holdings in SoundHound AI by 7.4% during the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock worth $200,000 after purchasing an additional 858 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.