SoundHound AI (NASDAQ:SOUN) Trading 2.4% Higher – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded up 2.4% during mid-day trading on Wednesday . The company traded as high as $7.24 and last traded at $7.16. Approximately 36,016,882 shares changed hands during trading, an increase of 25% from the average daily volume of 28,886,861 shares. The stock had previously closed at $6.99.

Wall Street Analyst Weigh In

SOUN has been the topic of several research reports. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Piper Sandler lowered their target price on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, August 6th. DA Davidson cut their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Finally, Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, SoundHound AI presently has an average rating of “Moderate Buy” and an average target price of $13.60.

SoundHound AI Trading Up 2.4%

The stock has a market capitalization of $3.18 billion, a P/E ratio of -18.84 and a beta of 2.64. The business has a fifty day simple moving average of $6.70 and a 200 day simple moving average of $7.44.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.11. The business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.SoundHound AI’s revenue was up 45.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.19) earnings per share. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.33 earnings per share for the current year.

Insider Activity at SoundHound AI

In other SoundHound AI news, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the transaction, the insider owned 743,521 shares of the company’s stock, valued at $5,546,666.66. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at $12,454,447.62. The trade was a 3.75% decrease in their position. 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. Insiders sold 268,022 shares of company stock valued at $1,999,444 over the last three months. Insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SOUN. Hollencrest Capital Management boosted its holdings in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after buying an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its position in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after acquiring an additional 1,060 shares during the period. Dogwood Wealth Management LLC raised its position in SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after acquiring an additional 1,544 shares during the period. Danske Bank A S purchased a new position in SoundHound AI in the third quarter valued at about $26,000. Finally, SHP Wealth Management purchased a new position in SoundHound AI in the fourth quarter valued at about $27,000. Institutional investors 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.