SoundHound AI (NASDAQ:SOUN) Stock Price Up 8.4% – Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) rose 8.4% during trading on Monday . The company traded as high as $6.73 and last traded at $6.68. 3,450,997 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 27,839,322 shares. The stock had previously closed at $6.16.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on SOUN. DA Davidson restated a “buy” rating and set a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, SoundHound AI has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Trading Up 4.9%

The company’s 50 day moving average price is $7.17 and its two-hundred day moving average price is $7.92. The firm has a market cap of $2.80 billion, a PE ratio of -13.76 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. During the same quarter last year, the company earned ($0.06) earnings per share. The company’s revenue for the quarter was up 51.7% on a year-over-year basis. Equities research analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the sale, the chief executive officer owned 1,947,237 shares in the company, valued at $14,526,388.02. This represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the transaction, the insider directly owned 743,521 shares in the company, valued at $5,546,666.66. This trade represents a 3.73% 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. Over the last 90 days, insiders have sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently added to or reduced their stakes in the company. Morgan Stanley boosted its position in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the period. UBS Group AG raised its position in shares of SoundHound AI by 77.6% during the 4th 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. Voloridge Investment Management LLC raised its position in shares of SoundHound AI by 2,259.7% during the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after purchasing an additional 2,106,298 shares during the period. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after buying an additional 1,909,868 shares in the last quarter. Finally, Jump Financial LLC purchased a new position in shares of SoundHound AI during the 3rd quarter valued at $21,679,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.