SoundHound AI (NASDAQ:SOUN) Shares Up 6.3% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shares rose 6.3% during trading on Monday . The stock traded as high as $7.09 and last traded at $6.96. Approximately 28,077,139 shares were traded during trading, an increase of 3% from the average daily volume of 27,291,377 shares. The stock had previously closed at $6.55.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on SOUN. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. DA Davidson reiterated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report 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 issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Up 6.3%

The firm has a market cap of $3.01 billion, a P/E ratio of -14.81 and a beta of 2.62. The business has a fifty day moving average of $7.75 and a 200 day moving average of $8.36.

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

Insider Buying and Selling at SoundHound AI

In related news, CEO Keyvan Mohajer sold 126,540 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 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 business’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 sale, the insider directly owned 743,521 shares in the company, valued at $5,546,666.66. This trade represents a 3.73% 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. Insiders have sold a total of 268,022 shares of company stock valued at $1,999,444 in the last three months. 8.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in the company. Danske Bank A S bought a new position in shares of SoundHound AI in the 3rd quarter valued at about $26,000. Northwestern Mutual Wealth Management Co. raised its stake in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the period. Dogwood Wealth Management LLC lifted its position in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares during the last quarter. SHP Wealth Management bought a new position in shares of SoundHound AI during the 4th quarter worth approximately $27,000. Finally, Parallel Advisors LLC boosted its stake in shares of SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after acquiring an additional 960 shares during the period. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.