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

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) shot up 1.1% on Tuesday. The company traded as high as $4.80 and last traded at $4.70. 10,655,782 shares traded 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.

Wall Street Analyst Weigh In

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

SoundHound AI Stock Up 1.1%

The firm has a market cap of $2.09 billion, a P/E ratio of -12.37 and a beta of 2.73. The business has a fifty day moving average of $6.29 and a 200 day moving average of $6.95.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.11. The company had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. SoundHound AI’s revenue was up 45.0% on a year-over-year basis. During the same period in the prior year, the business posted ($0.19) EPS. On average, sell-side analysts expect that SoundHound AI, Inc. will post -0.32 EPS for the current fiscal year.

Insider Activity

In related news, SVP Majid Emami sold 38,730 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the transaction, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. The trade was a 4.44% 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 this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $450,145.29. Following the completion of the sale, the chief operating officer directly 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. 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. Insiders have sold a total of 288,758 shares of company stock worth $1,828,598 in the last ninety days. Company insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently made changes to their positions in the company. SHP Wealth Management acquired a new stake in SoundHound AI during the 4th quarter worth $27,000. Hollencrest Capital Management grew its stake in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after acquiring an additional 2,400 shares during the period. Vermillion Wealth Management Inc. grew its stake in SoundHound AI by 92.0% in the first quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock valued at $63,000 after acquiring an additional 4,409 shares during the period. Clarus Group Inc. acquired a new position in SoundHound AI in the first quarter valued at about $69,000. Finally, 180 Wealth Advisors LLC bought a new stake in shares of SoundHound AI in the first quarter worth about $69,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.