SoundHound AI (NASDAQ:SOUN) Trading 6.5% Higher – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price shot up 6.5% during trading on Monday . The stock traded as high as $11.99 and last traded at $11.95. 23,756,859 shares were traded during mid-day trading, a decline of 48% from the average session volume of 45,507,918 shares. The stock had previously closed at $11.22.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on SOUN shares. HC Wainwright upped their price target on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research report on Thursday, October 16th. Oppenheimer started coverage on SoundHound AI in a report on Thursday, September 11th. They set a “market perform” rating for the company. LADENBURG THALM/SH SH upgraded SoundHound AI from a “neutral” rating to a “buy” rating and lifted their price target for the company from $9.00 to $16.00 in a report on Monday, August 11th. Northland Capmk upgraded SoundHound AI from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 8th. Finally, Piper Sandler lifted their target price on SoundHound AI from $12.00 to $15.00 and gave the company a “neutral” rating in a research note on Friday, November 7th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $17.42.

SoundHound AI Stock Performance

The stock has a market cap of $5.02 billion, a PE ratio of -14.23 and a beta of 2.60. The firm has a fifty day moving average price of $16.28 and a 200 day moving average price of $13.24.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results 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. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The company had revenue of $42.05 million for the quarter, compared to analyst estimates of $40.48 million. During the same period in the prior year, the company posted ($0.04) EPS. The firm’s quarterly revenue was up 67.6% compared to the same quarter last year. SoundHound AI has set its FY 2025 guidance at EPS. On average, equities research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity

In related news, CEO Keyvan Mohajer sold 138,523 shares of the stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $2,216,368.00. Following the completion of the transaction, the chief executive officer directly owned 2,461,267 shares of the company’s stock, valued at $39,380,272. This trade represents a 5.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Nitesh Sharan sold 126,596 shares of the business’s stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.58, for a total transaction of $2,098,961.68. Following the sale, the chief financial officer directly owned 1,796,304 shares in the company, valued at approximately $29,782,720.32. This represents a 6.58% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 787,260 shares of company stock valued at $13,973,056. 9.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently made changes to their positions in the company. CWM LLC lifted its position in SoundHound AI by 60.6% during the 1st quarter. CWM LLC now owns 21,458 shares of the company’s stock worth $174,000 after acquiring an additional 8,098 shares during the period. Victory Capital Management Inc. lifted its holdings in shares of SoundHound AI by 308.4% during the first quarter. Victory Capital Management Inc. now owns 163,713 shares of the company’s stock worth $1,329,000 after purchasing an additional 123,623 shares during the period. Kestra Private Wealth Services LLC boosted its position in SoundHound AI by 27.5% in the first quarter. Kestra Private Wealth Services LLC now owns 16,975 shares of the company’s stock valued at $138,000 after buying an additional 3,665 shares during the last quarter. PFG Advisors acquired a new position in SoundHound AI in the 1st quarter worth approximately $106,000. Finally, Skandinaviska Enskilda Banken AB publ increased its holdings in SoundHound AI by 16.8% in the 1st quarter. Skandinaviska Enskilda Banken AB publ now owns 23,948 shares of the company’s stock worth $194,000 after buying an additional 3,440 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.