SoundHound AI (NASDAQ:SOUN) Trading 2.4% Higher – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) shot up 2.4% during trading on Wednesday . The stock traded as high as $7.24 and last traded at $7.16. Approximately 36,016,882 shares traded hands during trading, an increase of 25% from the average daily volume of 28,886,861 shares. The stock had previously closed at $6.99.

Wall Street Analyst Weigh In

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

SoundHound AI Stock Up 5.0%

The firm has a market capitalization of $3.25 billion, a price-to-earnings ratio of -19.26 and a beta of 2.64. The business’s 50-day simple moving average is $6.70 and its two-hundred day simple moving average is $7.41.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) 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 business had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. During the same period last year, the business posted ($0.19) earnings per share. The company’s quarterly revenue was up 45.0% on a year-over-year basis. Sell-side analysts anticipate that SoundHound AI, Inc. will post -0.33 earnings per share for the current year.

Insider Activity at SoundHound AI

In related news, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the transaction, the insider owned 743,521 shares in the company, valued at approximately $5,546,666.66. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the company’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 transaction of $943,988.40. Following the sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. The trade was a 6.10% decrease in their ownership of the stock. 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. Over the last three months, insiders sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently modified their holdings of the business. Morgan Stanley increased its stake 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 worth $89,606,000 after buying an additional 2,917,280 shares during the period. UBS Group AG lifted its holdings in SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after buying an additional 2,676,707 shares during the last quarter. Voloridge Investment Management LLC increased its stake in SoundHound AI by 2,259.7% in the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after purchasing an additional 2,106,298 shares during the last quarter. Vanguard Group Inc. lifted its position in SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after acquiring an additional 1,909,868 shares during the last quarter. Finally, Jump Financial LLC purchased a new position in shares of SoundHound AI during the third quarter worth about $21,679,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.