SoundHound AI (NASDAQ:SOUN) Trading Up 8.7% – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was up 8.7% during trading on Thursday . The company traded as high as $12.98 and last traded at $12.80. Approximately 29,587,469 shares changed hands during trading, a decline of 34% from the average daily volume of 44,763,914 shares. The stock had previously closed at $11.78.

Analyst Upgrades and Downgrades

Several research firms have issued reports on SOUN. Wedbush restated an “outperform” rating and issued a $16.00 price objective on shares of SoundHound AI in a research note on Thursday, September 11th. LADENBURG THALM/SH SH raised SoundHound AI from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $9.00 to $16.00 in a report on Monday, August 11th. Wall Street Zen downgraded SoundHound AI from a “hold” rating to a “sell” rating in a report on Saturday, August 9th. DA Davidson reaffirmed a “buy” rating and set a $17.00 price objective on shares of SoundHound AI in a research report on Tuesday, November 18th. Finally, Piper Sandler increased their price objective on shares of SoundHound AI from $12.00 to $15.00 and gave the company a “neutral” rating in a research report on Friday, November 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $17.42.

SoundHound AI Trading Down 0.3%

The stock has a market cap of $5.36 billion, a P/E ratio of -15.19 and a beta of 2.63. The firm has a 50-day simple moving average of $15.49 and a two-hundred day simple moving average of $13.28.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.06. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The business had revenue of $42.05 million for the quarter, compared to the consensus estimate of $40.48 million. During the same period in the prior year, the company posted ($0.04) earnings per share. SoundHound AI’s revenue was up 67.6% compared to the same quarter last year. Sell-side analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 138,523 shares of the stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $2,216,368.00. Following the sale, the chief executive officer owned 2,461,267 shares of the company’s stock, valued at $39,380,272. This represents a 5.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Majid Emami sold 42,119 shares of the firm’s stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total value of $673,904.00. Following the transaction, the vice president owned 685,538 shares in the company, valued at approximately $10,968,608. This trade represents a 5.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 787,260 shares of company stock valued at $13,973,056. 9.17% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

Several large investors have recently modified their holdings of SOUN. Northwestern Mutual Wealth Management Co. raised its stake 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 valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Danske Bank A S bought a new position in SoundHound AI in the 3rd quarter valued at about $26,000. Advisors Asset Management Inc. raised its position in shares of SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after buying an additional 1,023 shares in the last quarter. Investors Research Corp raised its position in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after buying an additional 700 shares in the last quarter. Finally, AlphaQuest LLC bought a new stake in shares of SoundHound AI during the 1st quarter worth approximately $32,000. 19.28% of the stock is owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.