SoundHound AI (NASDAQ:SOUN) Shares Up 4.5% – Time to Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shot up 4.5% on Wednesday . The company traded as high as $8.60 and last traded at $8.42. 25,892,465 shares changed hands during trading, a decline of 7% from the average session volume of 27,943,152 shares. The stock had previously closed at $8.06.

Analyst Ratings Changes

A number of research firms have weighed in on SOUN. DA Davidson restated a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. HC Wainwright lowered their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Piper Sandler restated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Down 1.3%

The stock has a market cap of $3.56 billion, a PE ratio of -17.89 and a beta of 2.58. The company has a fifty day moving average price of $7.55 and a 200 day moving average price of $9.84.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm’s quarterly revenue was up 51.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.06) EPS. As a group, research analysts predict that SoundHound AI, Inc. will post -0.34 earnings per share for the current year.

Insider Transactions at SoundHound AI

In other news, CFO Nitesh Sharan sold 44,027 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $298,943.33. Following the transaction, the chief financial officer owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Michael Zagorsek sold 52,968 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the completion of the transaction, the chief operating officer owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. This represents a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 307,973 shares of company stock valued at $2,091,110. 8.84% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

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 grew its stake in shares of SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after purchasing an additional 1,201 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of SoundHound AI by 12.9% in the first 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. grew its stake in shares of SoundHound AI by 69.8% in the first 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 grew its stake in shares of SoundHound AI by 10.1% in the first 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 purchasing an additional 63,398 shares during the last quarter. Hedge funds and other 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.