SoundHound AI (NASDAQ:SOUN) Trading 1.2% Higher – Time to Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shot up 1.2% during mid-day trading on Thursday . The stock traded as high as $8.55 and last traded at $8.52. 18,544,427 shares changed hands during trading, a decline of 33% from the average session volume of 27,883,688 shares. The stock had previously closed at $8.42.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on SOUN. HC Wainwright lowered their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. DA Davidson reissued a “buy” rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Finally, Piper Sandler reissued a “neutral” rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, SoundHound AI presently has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Performance

The stock has a market capitalization of $3.56 billion, a price-to-earnings ratio of -17.89 and a beta of 2.58. The firm has a fifty day moving average of $7.56 and a 200-day moving average of $9.83.

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

Insider Transactions at SoundHound AI

In related news, insider James Ming Hom sold 31,019 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the sale, the insider directly owned 772,364 shares in the company, valued at approximately $5,244,351.56. This represents a 3.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Majid Emami sold 31,019 shares of the stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the sale, the senior vice president owned 501,826 shares of the company’s stock, valued at approximately $3,407,398.54. This represents a 5.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 307,973 shares of company stock worth $2,091,110 in the last quarter. 8.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Quantinno Capital Management LP boosted its position in SoundHound AI by 85.7% in the 1st quarter. Quantinno Capital Management LP now owns 84,594 shares of the company’s stock valued at $581,000 after buying an additional 39,028 shares during the last quarter. Themes Management Co LLC boosted its position in SoundHound AI by 86.5% in the 1st quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock valued at $1,315,000 after buying an additional 88,820 shares during the last quarter. Waverly Advisors LLC boosted its position in SoundHound AI by 8.1% in the 1st quarter. Waverly Advisors LLC now owns 59,994 shares of the company’s stock valued at $412,000 after buying an additional 4,472 shares during the last quarter. Hilltop Holdings Inc. boosted its position in SoundHound AI by 3.5% in the 1st quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company’s stock valued at $353,000 after buying an additional 1,753 shares during the last quarter. Finally, Keynote Financial Services LLC boosted its position in SoundHound AI by 6.9% in the 1st quarter. Keynote Financial Services LLC now owns 37,321 shares of the company’s stock valued at $256,000 after buying an additional 2,405 shares during the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.