SoundHound AI (NASDAQ:SOUN) Shares Up 1.1% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares shot up 1.1% during mid-day trading on Tuesday. The stock traded as high as $4.80 and last traded at $4.70. Approximately 10,655,782 shares changed hands during trading, a decline of 60% from the average session volume of 26,873,973 shares. The stock had previously closed at $4.65.

Analyst Upgrades and Downgrades

Several equities analysts have commented on SOUN shares. Weiss Ratings raised SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday. Yorkville Ives initiated coverage on SoundHound AI in a research report on Monday, October 5th. They set an “in-line” rating and a $6.50 price objective on the stock. Piper Sandler cut their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd. Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 26th. Finally, DA Davidson reduced their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, SoundHound AI currently has a consensus rating of “Moderate Buy” and a consensus price target of $11.50.

SoundHound AI Stock Performance

The firm has a market capitalization of $2.09 billion, a price-to-earnings ratio of -12.37 and a beta of 2.73. The firm’s 50-day moving average price is $6.29 and its two-hundred day moving average price is $6.95.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.11. The firm had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.19) earnings per share. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.32 EPS for the current year.

Insider Buying and Selling

In related news, COO Michael Zagorsek sold 71,113 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the sale, the chief operating officer owned 2,600,231 shares of the company’s stock, valued at $16,459,462.23. The trade was a 2.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $869,045.70. Following the completion of the sale, the chief executive officer directly owned 3,684,947 shares in the company, valued at approximately $23,325,714.51. This represents a 3.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 288,758 shares of company stock valued at $1,828,598. 8.84% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Swiss National Bank boosted its position in SoundHound AI by 3.7% in the first quarter. Swiss National Bank now owns 767,100 shares of the company’s stock valued at $5,270,000 after buying an additional 27,300 shares in the last quarter. California State Teachers Retirement System grew its stake in SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after buying an additional 87,998 shares during the last quarter. Rockefeller Capital Management L.P. grew its stake in SoundHound AI by 3.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 179,327 shares of the company’s stock worth $1,788,000 after buying an additional 6,096 shares during the last quarter. AXQ Capital LP increased its holdings in shares of SoundHound AI by 395.6% during the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after buying an additional 203,345 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new stake in shares of SoundHound AI during the first quarter worth approximately $1,606,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.