SoundHound AI (NASDAQ:SOUN) Shares Up 1.2% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price rose 1.2% on Tuesday . The company traded as high as $8.54 and last traded at $8.45. Approximately 20,086,136 shares were traded during trading, a decline of 27% from the average daily volume of 27,582,773 shares. The stock had previously closed at $8.35.

Analyst Ratings Changes

SOUN has been the subject of a number of recent research reports. DA Davidson reiterated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Piper Sandler reaffirmed a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. HC Wainwright decreased their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. One equities research 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 company’s stock. According to data from MarketBeat, SoundHound AI currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Trading Down 1.5%

The company’s fifty day moving average is $7.58 and its 200-day moving average is $9.51. The firm has a market capitalization of $3.52 billion, a P/E ratio of -17.70 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The business’s revenue was up 51.7% compared to the same quarter last year. During the same quarter last year, the business earned ($0.06) EPS. On average, equities research analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insiders Place Their Bets

In related news, COO Michael Zagorsek sold 52,968 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $359,652.72. Following the completion of the transaction, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at approximately $11,777,193.89. The trade was a 2.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction that occurred 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 sale, the chief financial officer owned 1,661,121 shares of the company’s stock, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 307,973 shares of company stock valued at $2,091,110 in the last ninety days. Company insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently modified their holdings of SOUN. Royal Bank of Canada increased its position in SoundHound AI by 71.3% during the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock worth $1,301,000 after acquiring an additional 66,714 shares during the period. Integrated Wealth Concepts LLC boosted its holdings in SoundHound AI by 8.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after purchasing an additional 1,201 shares during the period. NewEdge Advisors LLC boosted its holdings in SoundHound AI by 12.9% in the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock valued at $333,000 after purchasing an additional 4,692 shares during the period. Goldman Sachs Group Inc. grew its position in SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after purchasing an additional 1,085,473 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in SoundHound AI by 10.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock worth $5,620,000 after purchasing an additional 63,398 shares during the last quarter. 19.28% of the stock is owned by institutional investors.

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.