SoundHound AI (NASDAQ:SOUN) Shares Up 1.2% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was up 1.2% during trading on Friday . The stock traded as high as $11.16 and last traded at $11.02. Approximately 23,982,847 shares changed hands during trading, a decline of 45% from the average daily volume of 43,748,273 shares. The stock had previously closed at $10.89.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on SOUN shares. Wedbush reiterated an “outperform” rating and set a $16.00 price objective on shares of SoundHound AI in a research note on Thursday, September 11th. Piper Sandler lifted their price target on shares of SoundHound AI from $12.00 to $15.00 and gave the stock a “neutral” rating in a research note on Friday, November 7th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Tuesday, October 14th. HC Wainwright lifted their target price on SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research report on Thursday, October 16th. Finally, DA Davidson reissued a “buy” rating and issued a $17.00 price target on shares of SoundHound AI in a report on Tuesday, November 18th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $17.07.

SoundHound AI Stock Up 1.2%

The company has a 50 day simple moving average of $14.43 and a 200-day simple moving average of $13.37. The stock has a market cap of $4.63 billion, a price-to-earnings ratio of -13.12 and a beta of 2.63.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The business had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. During the same period in the previous year, the business earned ($0.04) EPS. The business’s quarterly revenue was up 67.6% on a year-over-year basis. On average, equities research analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In other news, COO Michael Zagorsek sold 69,837 shares of the company’s 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 $1,117,392.00. Following the completion of the transaction, the chief operating officer directly owned 1,860,790 shares of the company’s stock, valued at approximately $29,772,640. This represents a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Timothy Stonehocker sold 70,524 shares of the firm’s stock in a transaction that occurred on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $1,410,480.00. Following the completion of the sale, the chief technology officer directly owned 606,525 shares in the company, valued at approximately $12,130,500. This trade represents a 10.42% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 787,260 shares of company stock worth $13,973,056. Company insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted 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 valued at $698,798,000 after acquiring an additional 6,132,648 shares during the period. Geode Capital Management LLC lifted its position in SoundHound AI by 8.3% in the 2nd quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company’s stock valued at $94,759,000 after purchasing an additional 679,436 shares during the last quarter. State Street Corp boosted its stake in SoundHound AI by 9.1% during the 2nd quarter. State Street Corp now owns 8,476,348 shares of the company’s stock valued at $90,951,000 after purchasing an additional 708,369 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of SoundHound AI by 13.4% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,697,346 shares of the company’s stock valued at $91,604,000 after purchasing an additional 672,714 shares during the period. Finally, Northern Trust Corp raised its holdings in shares of SoundHound AI by 1.2% during the third quarter. Northern Trust Corp now owns 3,181,651 shares of the company’s stock valued at $51,161,000 after buying an additional 38,966 shares during the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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.