SoundHound AI (NASDAQ:SOUN) Trading 4% Higher – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) traded up 4% during trading on Tuesday . The stock traded as high as $6.60 and last traded at $6.56. Approximately 38,051,882 shares changed hands during trading, an increase of 37% from the average daily volume of 27,761,260 shares. The stock had previously closed at $6.31.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. DA Davidson reissued a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One 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 given a Sell rating to the stock. According to MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Price Performance

The company has a fifty day moving average price of $7.26 and a 200 day moving average price of $7.98. The stock has a market cap of $2.78 billion, a P/E ratio of -13.76 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The business had revenue of $44.20 million during 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 business’s revenue for the quarter was up 51.7% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.06) EPS. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Activity

In other news, SVP Majid Emami sold 28,843 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the senior vice president directly owned 472,983 shares of the company’s stock, valued at $3,528,453.18. The trade was a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction 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. This represents a 3.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after buying an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after acquiring an additional 273,097 shares in the last quarter. Morgan Stanley increased its position in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after acquiring an additional 2,917,280 shares during the last quarter. State Street Corp lifted its holdings in SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after acquiring an additional 80,908 shares during the period. Finally, UBS Group AG boosted its position in SoundHound AI by 77.6% in 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. 19.28% of the stock is owned by 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.