SoundHound AI (NASDAQ:SOUN) Shares Up 1.1% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price shot up 1.1% during trading on Tuesday . The stock traded as high as $6.55 and last traded at $6.47. 19,055,559 shares were traded during mid-day trading, a decline of 30% from the average session volume of 27,354,564 shares. The stock had previously closed at $6.40.

Analyst Ratings Changes

SOUN has been the subject of a number of recent research reports. DA Davidson reissued a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. 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 assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 1.9%

The company has a market cap of $2.83 billion, a P/E ratio of -13.94 and a beta of 2.62. The firm’s 50-day moving average price is $7.81 and its 200-day moving average price is $8.42.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS 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 during the quarter, compared to the consensus estimate of $42.56 million. During the same period last year, the business posted ($0.06) earnings per share. The firm’s quarterly revenue was up 51.7% on a year-over-year basis. As a group, analysts forecast that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Activity

In other 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 completion of the transaction, the insider directly owned 743,521 shares of the company’s stock, valued at $5,546,666.66. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the transaction, the senior vice president owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. This trade represents a 5.75% 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 quarter, insiders have sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds have recently bought and sold shares of the company. Danske Bank A S bought a new stake in SoundHound AI during the 3rd quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. grew its position in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC grew its position in shares of SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares in the last quarter. SHP Wealth Management bought a new position in shares of SoundHound AI in the fourth quarter worth $27,000. Finally, Parallel Advisors LLC increased its holdings in shares of SoundHound AI by 42.8% in the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after purchasing an additional 960 shares during the period. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.