SoundHound AI (NASDAQ:SOUN) Trading 3% Higher – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded up 3% on Thursday . The company traded as high as $7.39 and last traded at $7.22. Approximately 28,120,899 shares changed hands during trading, a decline of 2% from the average session volume of 28,689,791 shares. The stock had previously closed at $7.01.

Analyst Ratings Changes

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

SoundHound AI Trading Down 1.5%

The company’s 50-day moving average is $6.71 and its 200 day moving average is $7.38. The firm has a market cap of $3.16 billion, a PE ratio of -18.71 and a beta of 2.64.

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

Insider Activity

In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. This trade represents a 6.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the insider directly owned 743,521 shares in the company, valued at approximately $5,546,666.66. This trade represents a 3.73% decrease in their position. The SEC filing for this sale provides additional information. 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 in the last ninety days. Corporate insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its holdings in SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after buying an additional 1,909,868 shares in the last quarter. UBS Group AG boosted its stake in shares of SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after acquiring an additional 2,676,707 shares in the last quarter. California State Teachers Retirement System boosted its stake in shares of SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after acquiring an additional 87,998 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of SoundHound AI by 140.5% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock valued at $2,826,000 after acquiring an additional 155,743 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of SoundHound AI by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after acquiring an additional 273,097 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.