SoundHound AI (NASDAQ:SOUN) Stock Price Up 5.1% – Time to Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded up 5.1% on Friday . The company traded as high as $9.22 and last traded at $9.00. 40,447,250 shares changed hands during mid-day trading, an increase of 47% from the average session volume of 27,532,604 shares. The stock had previously closed at $8.56.

Analysts Set New Price Targets

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

SoundHound AI Stock Performance

The firm’s 50 day simple moving average is $7.64 and its 200-day simple moving average is $9.26. The company has a market capitalization of $3.89 billion, a price-to-earnings ratio of -19.11 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN) last announced its 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 firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same period last year, the firm earned ($0.06) earnings per share. SoundHound AI’s revenue for the quarter was up 51.7% compared to the same quarter last year. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.43 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 124,510 shares of the business’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the sale, the chief executive officer directly owned 2,073,777 shares of the company’s stock, valued at $14,080,945.83. The trade was a 5.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Michael Zagorsek sold 52,968 shares of the business’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $359,652.72. Following the sale, the chief operating officer directly owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. This trade represents a 2.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 307,973 shares of company stock worth $2,091,110. Insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of SoundHound AI by 16.4% during the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after acquiring an additional 6,132,648 shares in the last quarter. Morgan Stanley raised its holdings in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after acquiring an additional 2,917,280 shares in the last quarter. UBS Group AG raised its holdings in shares of 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 acquiring an additional 2,676,707 shares in the last quarter. Voloridge Investment Management LLC raised its holdings in shares of SoundHound AI by 2,259.7% during the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock worth $21,929,000 after acquiring an additional 2,106,298 shares in the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of SoundHound AI during the third quarter worth $21,679,000. 19.28% of the stock is currently 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.