SoundHound AI (NASDAQ:SOUN) Trading Up 6.7% – Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) traded up 6.7% on Tuesday . The stock traded as high as $6.53 and last traded at $6.51. 22,574,802 shares were traded during trading, a decline of 20% from the average daily volume of 28,332,811 shares. The stock had previously closed at $6.10.

Wall Street Analyst Weigh In

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

SoundHound AI Trading Up 6.7%

The company has a market capitalization of $2.82 billion, a P/E ratio of -13.85 and a beta of 2.64. The stock has a 50 day moving average price of $6.91 and a 200 day moving average price of $7.70.

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

Insider Activity at SoundHound AI

In related news, CTO Timothy Stonehocker sold 18,802 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the transaction, the chief technology officer owned 502,290 shares in the company, valued at $3,747,083.40. This trade represents a 3.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $484,855.24. Following the sale, the chief operating officer owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 268,022 shares of company stock valued at $1,999,444. Corporate insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently modified their holdings of SOUN. Royal Bank of Canada grew its stake in shares of SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock worth $1,301,000 after purchasing an additional 66,714 shares during the last quarter. Integrated Wealth Concepts LLC increased its holdings in SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after purchasing an additional 1,201 shares during the period. NewEdge Advisors LLC raised its position in SoundHound AI by 12.9% during the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock worth $333,000 after purchasing an additional 4,692 shares during the last quarter. Goldman Sachs Group Inc. raised its position in SoundHound AI by 69.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after purchasing an additional 1,085,473 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in SoundHound AI by 10.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock worth $5,620,000 after buying an additional 63,398 shares during the period. 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.