SoundHound AI (NASDAQ:SOUN) Trading Up 3% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price rose 3% during mid-day trading on Tuesday . The company traded as high as $11.15 and last traded at $11.11. Approximately 18,314,227 shares changed hands during mid-day trading, a decline of 58% from the average daily volume of 44,013,277 shares. The stock had previously closed at $10.79.

Analyst Ratings Changes

Several analysts have recently issued reports on SOUN shares. Piper Sandler increased their target price on SoundHound AI from $12.00 to $15.00 and gave the stock a “neutral” rating in a report on Friday, November 7th. Wedbush reissued an “outperform” rating and issued a $16.00 price target on shares of SoundHound AI in a research report on Thursday, September 11th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their target price for the company from $13.00 to $15.00 in a report on Friday, December 12th. DA Davidson reissued a “buy” rating and issued a $17.00 price target on shares of SoundHound AI in a research report on Tuesday, November 18th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Tuesday, October 14th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, two have issued 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 $17.07.

SoundHound AI Stock Performance

The firm has a 50-day moving average price of $14.43 and a 200-day moving average price of $13.37. The stock has a market cap of $4.57 billion, a PE ratio of -12.96 and a beta of 2.63.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $42.05 million during the quarter, compared to analyst estimates of $40.48 million. During the same period in the previous year, the business posted ($0.04) earnings per share. The business’s revenue for the quarter was up 67.6% on a year-over-year basis. As a group, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In other SoundHound AI news, COO Michael Zagorsek sold 69,837 shares of the business’s stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total transaction of $1,117,392.00. Following the transaction, the chief operating officer owned 1,860,790 shares in the company, valued at $29,772,640. The trade was a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Nitesh Sharan sold 60,376 shares of the company’s stock in a transaction that occurred on Tuesday, October 14th. The shares were sold at an average price of $21.21, for a total value of $1,280,574.96. Following the transaction, the chief financial officer directly owned 1,765,928 shares in the company, valued at approximately $37,455,332.88. This represents a 3.31% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 787,260 shares of company stock worth $13,973,056. 9.17% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Northern Trust Corp grew its holdings in SoundHound AI by 2.5% during the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company’s stock valued at $24,190,000 after purchasing an additional 72,766 shares during the period. Y Intercept Hong Kong Ltd purchased a new stake in shares of SoundHound AI in the second quarter worth about $3,696,000. First Manhattan CO. LLC. purchased a new stake in SoundHound AI in the 1st quarter worth approximately $985,000. Driehaus Capital Management LLC raised its position in shares of SoundHound AI by 20.6% in the first quarter. Driehaus Capital Management LLC now owns 998,481 shares of the company’s stock worth $8,108,000 after buying an additional 170,786 shares in the last quarter. Finally, Nuveen LLC purchased a new position in shares of SoundHound AI during the first quarter worth about $7,406,000. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

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.