SoundHound AI (NASDAQ:SOUN) Shares Up 6.2% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was up 6.2% on Monday . The stock traded as high as $7.76 and last traded at $7.33. Approximately 32,943,893 shares were traded during mid-day trading, an increase of 20% from the average daily volume of 27,530,955 shares. The stock had previously closed at $6.90.

Analyst Ratings Changes

SOUN has been the topic of several recent research reports. Piper Sandler restated a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. DA Davidson reaffirmed a “buy” rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. HC Wainwright decreased their price objective 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, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Up 6.2%

The firm has a market cap of $3.17 billion, a price-to-earnings ratio of -15.60 and a beta of 2.56. The business has a 50 day moving average of $7.91 and a 200 day moving average of $8.92.

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

Insider Activity

In related news, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $845,422.90. Following the transaction, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. This represents a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $298,943.33. Following the transaction, the chief financial officer owned 1,661,121 shares in the company, valued at $11,279,011.59. This trade represents a 2.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 307,973 shares of company stock valued at $2,091,110 in the last three months. Company insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its holdings in shares of SoundHound AI by 4.4% in the 4th 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 period. Rakuten Securities Inc. raised its holdings in shares of SoundHound AI by 877.9% in the 4th 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 period. Clear Street Group Inc. purchased a new position in shares of SoundHound AI in the 3rd quarter worth about $12,944,000. UBS Group AG raised its holdings in shares of SoundHound AI by 77.6% in the 4th 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 period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of SoundHound AI by 140.5% in the 4th 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 period. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

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.