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

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was up 6.3% during mid-day trading on Monday . The company traded as high as $7.09 and last traded at $6.96. 28,077,139 shares changed hands during trading, an increase of 3% from the average session volume of 27,291,377 shares. The stock had previously closed at $6.55.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on SOUN shares. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, DA Davidson reaffirmed a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Price Performance

The company has a market cap of $3.01 billion, a P/E ratio of -14.81 and a beta of 2.62. The stock has a 50-day moving average of $7.75 and a 200 day moving average of $8.36.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same quarter in the previous year, the company earned ($0.06) earnings per share. The company’s quarterly revenue was up 51.7% on a year-over-year basis. Sell-side analysts predict that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Activity

In other SoundHound AI news, insider James Ming Hom sold 28,843 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the insider owned 743,521 shares of the company’s stock, valued at approximately $5,546,666.66. This trade represents a 3.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $943,988.40. Following the sale, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. This represents a 6.10% 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. Over the last ninety days, insiders sold 268,022 shares of company stock valued at $1,999,444. Corporate insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of SOUN. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after acquiring an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after purchasing an additional 273,097 shares in the last quarter. Morgan Stanley grew its holdings in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the last quarter. State Street Corp increased its stake in shares of SoundHound AI by 0.9% in the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after buying an additional 80,908 shares during the period. Finally, UBS Group AG raised its holdings in SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after buying an additional 2,676,707 shares during the last quarter. Institutional investors 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.