SoundHound AI (NASDAQ:SOUN) Trading 2.2% Higher – Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) traded up 2.2% on Monday . The stock traded as high as $6.13 and last traded at $6.03. 19,120,077 shares traded hands during trading, a decline of 29% from the average session volume of 26,869,816 shares. The stock had previously closed at $5.90.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on SOUN shares. Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. HC Wainwright cut their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research note on Monday, March 2nd. Piper Sandler reissued 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. Finally, DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. One equities 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 issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Price Performance

The stock has a 50 day simple moving average of $8.19 and a two-hundred day simple moving average of $12.02. The company has a market cap of $2.55 billion, a PE ratio of -120.58 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. During the same period last year, the firm posted ($0.05) earnings per share. The company’s revenue for the quarter was up 59.4% compared to the same quarter last year. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other news, SVP Majid Emami sold 31,019 shares of the company’s stock in a transaction dated 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 directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $845,422.90. Following the sale, the chief executive officer owned 2,073,777 shares of the company’s stock, valued at $14,080,945.83. This trade represents a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 337,649 shares of company stock worth $2,447,222 in the last three months. Company insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. grew its stake in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC raised its stake in shares of SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after purchasing an additional 1,544 shares during the last quarter. Danske Bank A S purchased a new stake in shares of SoundHound AI during the third quarter worth approximately $26,000. Advisors Asset Management Inc. lifted its holdings in shares of SoundHound AI by 68.4% during the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock worth $27,000 after purchasing an additional 1,023 shares during the period. Finally, SHP Wealth Management acquired a new stake in shares of SoundHound AI during the fourth quarter worth $27,000. 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.