SoundHound AI (NASDAQ:SOUN) Stock Price Up 2.3% – Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) rose 2.3% during mid-day trading on Monday . The stock traded as high as $11.53 and last traded at $11.27. Approximately 17,431,280 shares changed hands during trading, a decline of 60% from the average daily volume of 43,641,754 shares. The stock had previously closed at $11.02.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on SOUN. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $13.00 to $15.00 in a report on Friday, December 12th. Oppenheimer initiated coverage on SoundHound AI in a research note on Thursday, September 11th. They set a “market perform” rating for the company. DA Davidson reiterated a “buy” rating and issued a $17.00 target price on shares of SoundHound AI in a research note on Tuesday, November 18th. Wedbush reiterated an “outperform” rating and issued a $16.00 target price on shares of SoundHound AI in a report on Thursday, September 11th. Finally, HC Wainwright raised their price target on shares of SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a report on Thursday, October 16th. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, SoundHound AI currently has a consensus rating of “Moderate Buy” and an average price target of $17.07.

SoundHound AI Stock Down 1.0%

The company has a market capitalization of $4.57 billion, a PE ratio of -12.96 and a beta of 2.63. The business has a 50 day simple moving average of $13.74 and a 200 day simple moving average of $13.43.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.06. The firm had revenue of $42.05 million for the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The company’s revenue for the quarter was up 67.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.04) earnings per share. Equities analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 118,654 shares of the firm’s stock in a transaction on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $2,373,080.00. Following the completion of the transaction, the chief executive officer owned 2,342,613 shares in the company, valued at $46,852,260. This trade represents a 4.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Nitesh Sharan sold 60,376 shares of the business’s stock in a transaction dated Tuesday, October 14th. The shares were sold at an average price of $21.21, for a total value of $1,280,574.96. Following the sale, the chief financial officer owned 1,765,928 shares in the company, valued at approximately $37,455,332.88. The trade was a 3.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 292,064 shares of company stock worth $5,904,921. Corporate insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently modified their holdings of the company. Russell Investments Group Ltd. increased its holdings in SoundHound AI by 45.1% in the 1st quarter. Russell Investments Group Ltd. now owns 9,576 shares of the company’s stock worth $78,000 after buying an additional 2,978 shares during the period. Northern Trust Corp lifted its stake in SoundHound AI by 2.5% during the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company’s stock valued at $24,190,000 after acquiring an additional 72,766 shares during the period. Wellington Management Group LLP increased its stake in shares of SoundHound AI by 6.3% in the first quarter. Wellington Management Group LLP now owns 417,461 shares of the company’s stock worth $3,390,000 after acquiring an additional 24,848 shares during the period. AlphaQuest LLC purchased a new position in shares of SoundHound AI during the first quarter worth $32,000. Finally, MetLife Investment Management LLC raised its holdings in shares of SoundHound AI by 2.1% during the first quarter. MetLife Investment Management LLC now owns 189,165 shares of the company’s stock worth $1,536,000 after purchasing an additional 3,831 shares during the last quarter. 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.