SoundHound AI (NASDAQ:SOUN) Shares Up 1.4% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were up 1.4% during mid-day trading on Monday . The stock traded as high as $7.65 and last traded at $7.49. Approximately 21,925,263 shares traded hands during trading, a decline of 20% from the average daily volume of 27,522,338 shares. The stock had previously closed at $7.39.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of analyst reports. Piper Sandler reissued a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. DA Davidson reissued a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. HC Wainwright cut their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, SoundHound AI presently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Price Performance

The firm has a market cap of $3.24 billion, a PE ratio of -15.94 and a beta of 2.56. The stock has a 50-day moving average price of $7.84 and a 200 day moving average price of $9.07.

SoundHound AI (NASDAQ:SOUN) last announced 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 business had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. SoundHound AI’s revenue for the quarter was up 51.7% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.06) EPS. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Activity

In other news, CFO Nitesh Sharan sold 44,027 shares of the company’s 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 completion of the sale, the chief financial officer owned 1,661,121 shares of the company’s stock, valued at $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keyvan Mohajer sold 124,510 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $845,422.90. Following the completion of the transaction, the chief executive officer owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. This trade represents a 5.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 307,973 shares of company stock valued at $2,091,110 in the last 90 days. 8.84% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

Institutional investors and hedge funds have recently bought and sold shares of the company. Danske Bank A S acquired a new stake in SoundHound AI during the third quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC grew its holdings in shares of SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the last quarter. SHP Wealth Management bought a new position in shares of SoundHound AI during the fourth quarter valued at approximately $27,000. Finally, Parallel Advisors LLC grew its holdings in shares of SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after purchasing an additional 960 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.