SoundHound AI (NASDAQ:SOUN) Shares Up 13.9% – Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) rose 13.9% on Tuesday . The stock traded as high as $6.94 and last traded at $6.87. Approximately 26,218,870 shares traded hands during trading, a decline of 3% from the average daily volume of 26,897,480 shares. The stock had previously closed at $6.03.

Wall Street Analyst Weigh In

Several equities analysts have commented on SOUN shares. Piper Sandler reiterated a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. HC Wainwright lowered their target price on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and increased their target price for the company from $13.00 to $15.00 in a research report on Friday, December 12th. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Finally, DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Up 13.9%

The firm has a 50-day simple moving average of $8.09 and a 200 day simple moving average of $11.96. The company has a market cap of $2.90 billion, a price-to-earnings ratio of -137.37 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. During the same period last year, the firm posted ($0.05) earnings per share. The company’s revenue for the quarter was up 59.4% compared to the same quarter last year. As a group, research analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Activity at SoundHound AI

In other news, SVP Majid Emami sold 31,019 shares of the stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the sale, the senior vice president owned 501,826 shares in the company, valued at approximately $3,407,398.54. This represents a 5.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Keyvan Mohajer sold 124,510 shares of the firm’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $845,422.90. Following the transaction, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. This represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 337,649 shares of company stock worth $2,447,222 in the last three months. Company insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in SOUN. Northwestern Mutual Wealth Management Co. increased its holdings in shares of 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 during the period. Dogwood Wealth Management LLC lifted its holdings in shares of SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after purchasing an additional 1,544 shares during the period. Danske Bank A S purchased a new position in SoundHound AI in the 3rd quarter valued at $26,000. Advisors Asset Management Inc. grew its position in 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 during the last quarter. Finally, SHP Wealth Management acquired a new position in SoundHound AI in the 4th quarter valued at $27,000. 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.