SoundHound AI (NASDAQ:SOUN) Trading 6.4% Higher – Time to Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded up 6.4% during mid-day trading on Friday . The company traded as high as $15.23 and last traded at $14.89. 18,031,411 shares changed hands during mid-day trading, a decline of 70% from the average session volume of 59,985,578 shares. The stock had previously closed at $14.00.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on SOUN. Northland Securities upped their price target on SoundHound AI from $6.00 to $8.00 and gave the stock a “market perform” rating in a report on Tuesday, January 14th. HC Wainwright reiterated a “buy” rating and set a $26.00 target price on shares of SoundHound AI in a research note on Monday, January 13th. Barclays restated a “neutral” rating and set a $7.00 price objective on shares of SoundHound AI in a report on Wednesday, November 13th. Wedbush lifted their target price on SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a research report on Monday, December 16th. Finally, LADENBURG THALM/SH SH reiterated a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, November 13th. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $12.36.

SoundHound AI Stock Up 6.8 %

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58. The firm has a 50 day simple moving average of $15.51 and a 200-day simple moving average of $8.77. The stock has a market capitalization of $5.53 billion, a price-to-earnings ratio of -41.65 and a beta of 2.63.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.01. The firm had revenue of $25.10 million during the quarter, compared to the consensus estimate of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm’s quarterly revenue was up 88.7% on a year-over-year basis. During the same period last year, the firm posted ($0.09) EPS. On average, sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In related news, COO Michael Zagorsek sold 277,813 shares of SoundHound AI stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $21.25, for a total value of $5,903,526.25. Following the completion of the sale, the chief operating officer now directly owns 1,473,322 shares in the company, valued at $31,308,092.50. This trade represents a 15.86 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Timothy Stonehocker sold 34,407 shares of SoundHound AI stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $20.30, for a total transaction of $698,462.10. Following the sale, the chief technology officer now owns 796,581 shares of the company’s stock, valued at approximately $16,170,594.30. This represents a 4.14 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,782,918 shares of company stock worth $45,391,343 in the last three months. Insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SOUN. Sanctuary Advisors LLC grew its holdings in SoundHound AI by 48.8% during the fourth quarter. Sanctuary Advisors LLC now owns 44,618 shares of the company’s stock valued at $885,000 after purchasing an additional 14,642 shares during the period. Valmark Advisers Inc. acquired a new stake in shares of SoundHound AI during the fourth quarter worth $217,000. Sheaff Brock Investment Advisors LLC lifted its position in SoundHound AI by 149.9% in the 4th quarter. Sheaff Brock Investment Advisors LLC now owns 33,652 shares of the company’s stock valued at $668,000 after acquiring an additional 20,185 shares in the last quarter. Strategic Financial Concepts LLC acquired a new position in SoundHound AI in the 4th quarter worth $207,000. Finally, Allworth Financial LP increased its holdings in SoundHound AI by 65.2% during the 4th quarter. Allworth Financial LP now owns 9,909 shares of the company’s stock worth $197,000 after purchasing an additional 3,909 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.