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

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price gapped up prior to trading on Tuesday . The stock had previously closed at $9.58, but opened at $10.12. SoundHound AI shares last traded at $10.63, with a volume of 10,172,396 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. HC Wainwright lowered their price target on shares of SoundHound AI from $26.00 to $18.00 and set a “buy” rating on the stock in a research note on Monday, May 12th. DA Davidson lowered their price target on shares of SoundHound AI from $13.00 to $10.00 and set a “buy” rating for the company in a report on Monday, April 14th. Wedbush dropped their target price on SoundHound AI from $22.00 to $15.00 and set an “outperform” rating for the company in a research report on Friday, May 9th. Cantor Fitzgerald raised shares of SoundHound AI to a “hold” rating in a report on Monday, February 24th. Finally, Piper Sandler started coverage on shares of SoundHound AI in a research note on Tuesday. They issued an “overweight” rating and a $12.00 price objective on the stock. Four analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $10.50.

SoundHound AI Price Performance

The firm’s fifty day moving average price is $9.09 and its 200-day moving average price is $11.74. The stock has a market cap of $4.32 billion, a P/E ratio of -30.07 and a beta of 2.71. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.03. The firm had revenue of $29.13 million during the quarter, compared to analyst estimates of $30.38 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The business’s revenue was up 151.2% on a year-over-year basis. During the same period last year, the business earned ($0.07) earnings per share. Analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In other SoundHound AI news, insider James Ming Hom sold 28,388 shares of the company’s stock in a transaction dated Thursday, March 20th. The stock was sold at an average price of $9.90, for a total value of $281,041.20. Following the completion of the sale, the insider now owns 689,652 shares in the company, valued at $6,827,554.80. This represents a 3.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CTO Timothy Stonehocker sold 3,333 shares of the company’s stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $10.08, for a total transaction of $33,596.64. Following the completion of the transaction, the chief technology officer now owns 765,534 shares of the company’s stock, valued at approximately $7,716,582.72. The trade was a 0.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 548,537 shares of company stock valued at $5,567,760 over the last 90 days. Company insiders own 12.28% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently made changes to their positions in the business. Janney Montgomery Scott LLC bought a new position in shares of SoundHound AI during the fourth quarter worth $411,000. Mutual Advisors LLC bought a new position in SoundHound AI in the fourth quarter worth approximately $320,000. Avior Wealth Management LLC purchased a new stake in shares of SoundHound AI in the 4th quarter worth $64,000. Sound Income Strategies LLC grew its position in shares of SoundHound AI by 2,542.0% during the 4th quarter. Sound Income Strategies LLC now owns 1,321 shares of the company’s stock worth $26,000 after buying an additional 1,271 shares in the last quarter. Finally, Cyndeo Wealth Partners LLC bought a new stake in shares of SoundHound AI in the fourth quarter valued at about $198,000. Institutional investors own 19.28% of the company’s stock.

About SoundHound AI

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.