SoundHound AI (NASDAQ:SOUN) Stock Price Up 12.6% – Time to Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) rose 12.6% during mid-day trading on Wednesday . The stock traded as high as $7.94 and last traded at $7.85. Approximately 41,285,795 shares changed hands during mid-day trading, an increase of 59% from the average daily volume of 25,885,693 shares. The stock had previously closed at $6.97.

Wall Street Analyst Weigh In

SOUN has been the subject of several research analyst reports. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, Piper Sandler restated a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Up 4.9%

The business’s fifty day moving average price is $7.45 and its 200 day moving average price is $11.20. The firm has a market capitalization of $3.42 billion, a PE ratio of -161.57 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. During the same period in the prior year, the company earned ($0.05) earnings per share. The business’s revenue was up 59.4% compared to the same quarter last year. On average, analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Transactions at SoundHound AI

In related news, CFO Nitesh Sharan sold 44,027 shares of SoundHound AI stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the transaction, the chief financial officer directly owned 1,661,121 shares in the company, valued at $11,279,011.59. This trade represents a 2.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Keyvan Mohajer sold 124,510 shares of SoundHound AI stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the completion of the transaction, the chief executive officer owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. This trade represents a 5.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 307,973 shares of company stock worth $2,091,110 over the last quarter. 9.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after purchasing an additional 1,909,868 shares during the period. Geode Capital Management LLC lifted its position in SoundHound AI by 3.1% in 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 during the period. Morgan Stanley lifted its position in SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares during the period. State Street Corp lifted its position in 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 purchasing an additional 80,908 shares during the period. Finally, UBS Group AG lifted its position in SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the period. 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.