SoundHound AI (NASDAQ:SOUN) Stock Jumps 1.1% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price shot up 1.1% during trading on Tuesday. The company traded as high as $4.80 and last traded at $4.70. 10,655,782 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 26,873,973 shares. The stock had previously closed at $4.65.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on SOUN. Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. Piper Sandler reduced their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a report on Tuesday, September 22nd. Weiss Ratings raised SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. DA Davidson decreased their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Finally, Yorkville Ives assumed coverage on SoundHound AI in a report on Monday, October 5th. They issued an “in-line” rating and a $6.50 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $11.50.

SoundHound AI Price Performance

The company has a market capitalization of $2.05 billion, a price-to-earnings ratio of -12.13 and a beta of 2.73. The stock’s fifty day simple moving average is $6.18 and its two-hundred day simple moving average is $6.92.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same period last year, the firm posted ($0.19) EPS. The company’s revenue for the quarter was up 45.0% on a year-over-year basis. On average, sell-side analysts predict that SoundHound AI, Inc. will post -0.32 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, insider James Hom sold 38,730 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the transaction, the insider owned 1,105,555 shares of the company’s stock, valued at $6,998,163.15. This trade represents a 3.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the transaction, the chief operating officer owned 2,600,231 shares of the company’s stock, valued at approximately $16,459,462.23. The trade was a 2.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 288,758 shares of company stock worth $1,828,598. Insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Hedge funds have recently made changes to their positions in the stock. SG Americas Securities LLC bought a new position in SoundHound AI during the 1st quarter worth $1,606,000. AXQ Capital LP lifted its stake in SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after buying an additional 203,345 shares during the last quarter. Corient Private Wealth LP lifted its stake in SoundHound AI by 777.2% in the second quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock valued at $1,144,000 after buying an additional 156,612 shares during the last quarter. Themes Management Co LLC lifted its stake in SoundHound AI by 86.5% in the first quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock valued at $1,315,000 after buying an additional 88,820 shares during the last quarter. Finally, California State Teachers Retirement System boosted its holdings in shares of SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after acquiring an additional 87,998 shares during the period. Institutional investors own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.