SoundHound AI (NASDAQ:SOUN) Trading Up 4.5% – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded up 4.5% during trading on Wednesday . The company traded as high as $8.60 and last traded at $8.42. 25,892,465 shares were traded during mid-day trading, a decline of 7% from the average session volume of 27,943,152 shares. The stock had previously closed at $8.06.

Key Headlines Impacting SoundHound AI

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: Several recent pieces highlight that SoundHound just posted another earnings beat and continues to grow revenue quickly, with first-quarter sales up 52% year over year. Bulls argue that expanding AI demand, plus newer initiatives like OASYS and the LivePerson deal, could support longer-term growth. Article Title
• Positive Sentiment: Investor interest has stayed high, and one recent note said SOUN has outperformed over the past month despite broader tech weakness, suggesting some traders still view it as a compelling AI name. Article Title
• Neutral Sentiment: SoundHound is getting more attention from investors and financial media, which can keep trading volume elevated, but these “what you need to know” and valuation-focused pieces do not add new fundamental catalysts on their own. Article Title
• Negative Sentiment: Recent coverage also underscores the main reason the stock has come under pressure: the company’s wider-than-expected loss, margin concerns, and a still-rich valuation despite strong revenue growth. Article Title
• Negative Sentiment: One risk-focused report said SoundHound’s unchanged risk profile and regulatory exposure continue to weigh on performance and valuation, reinforcing the market’s caution after the post-earnings selloff. Article Title

Wall Street Analysts Forecast Growth

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

SoundHound AI Trading Up 4.5%

The company has a market capitalization of $3.56 billion, a price-to-earnings ratio of -17.91 and a beta of 2.58. The company has a 50 day moving average price of $7.56 and a 200 day moving average price of $9.97.

SoundHound AI (NASDAQ:SOUN) last issued 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). The firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 41.46%. The company’s revenue was up 51.7% compared to the same quarter last year. During the same period last year, the company earned ($0.06) EPS. Equities analysts predict that SoundHound AI, Inc. will post -0.34 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Michael Zagorsek sold 52,968 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 $359,652.72. Following the transaction, the chief operating officer directly owned 1,734,491 shares in the company, valued at $11,777,193.89. This represents a 2.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Majid Emami sold 31,019 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the transaction, the senior vice president directly owned 501,826 shares in the company, valued at approximately $3,407,398.54. The trade was a 5.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after purchasing an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC increased its holdings in SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after purchasing an additional 273,097 shares during the last quarter. Morgan Stanley increased its holdings in SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares during the last quarter. State Street Corp lifted its stake in SoundHound AI by 0.9% in the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after buying an additional 80,908 shares during the period. Finally, UBS Group AG boosted its holdings in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after buying an additional 2,676,707 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.