SoundHound AI (NASDAQ:SOUN) Shares Up 5.1% – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded up 5.1% on Friday . The company traded as high as $9.22 and last traded at $9.00. 40,447,250 shares were traded during mid-day trading, an increase of 47% from the average session volume of 27,532,604 shares. The stock had previously closed at $8.56.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. DA Davidson restated a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Piper Sandler restated a “neutral” rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. HC Wainwright cut their target price on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Finally, Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. One equities 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 assigned a Sell rating to the stock. According to data from MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Price Performance

The stock has a market cap of $3.89 billion, a price-to-earnings ratio of -19.15 and a beta of 2.58. The business’s 50-day simple moving average is $7.67 and its two-hundred day simple moving average is $9.26.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The business had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.SoundHound AI’s revenue for the quarter was up 51.7% on a year-over-year basis. During the same quarter last year, the firm posted ($0.06) EPS. Equities research analysts forecast that SoundHound AI, Inc. will post -0.43 earnings per share for the current year.

Insider Activity at SoundHound AI

In other news, insider James Ming Hom sold 31,019 shares of SoundHound AI stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the transaction, the insider owned 772,364 shares in the company, valued at approximately $5,244,351.56. The trade was a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of SoundHound AI stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction 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. This trade represents a 2.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 307,973 shares of company stock valued at $2,091,110 in the last quarter. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Danske Bank A S acquired a new position in shares of SoundHound AI in the third quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. lifted its stake 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 worth $25,000 after acquiring an additional 1,060 shares during the period. Dogwood Wealth Management LLC lifted its stake in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after acquiring an additional 1,544 shares during the period. SHP Wealth Management acquired a new position in shares of SoundHound AI in the fourth quarter worth approximately $27,000. Finally, Parallel Advisors LLC lifted its holdings in SoundHound AI by 42.8% in the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after buying an additional 960 shares during the period. 19.28% of the stock is 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.