SoundHound AI (NASDAQ:SOUN) Trading 3.7% Higher – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded up 3.7% during mid-day trading on Thursday . The company traded as high as $7.02 and last traded at $7.00. 27,025,042 shares were traded during mid-day trading, a decline of 2% from the average session volume of 27,491,104 shares. The stock had previously closed at $6.75.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. DA Davidson reissued a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. HC Wainwright dropped their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research note on Monday, March 2nd. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One equities 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 assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Performance

The business has a 50 day moving average of $7.91 and a two-hundred day moving average of $8.94. The firm has a market capitalization of $2.99 billion, a price-to-earnings ratio of -14.68 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same period last year, the company posted ($0.06) earnings per share. The firm’s quarterly revenue was up 51.7% compared to the same quarter last year. On average, equities analysts predict that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other news, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $298,943.33. Following the completion of the sale, the chief financial officer directly owned 1,661,121 shares of the company’s stock, valued at $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $845,422.90. Following the completion of the sale, the chief executive officer directly owned 2,073,777 shares of the company’s stock, valued at approximately $14,080,945.83. This trade represents a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 307,973 shares of company stock worth $2,091,110 in the last quarter. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after purchasing an additional 1,909,868 shares during the last quarter. Rakuten Securities Inc. grew its holdings in shares of SoundHound AI by 877.9% in the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock valued at $3,326,000 after acquiring an additional 299,492 shares in the last quarter. Clear Street Group Inc. purchased a new stake in shares of SoundHound AI during the third quarter valued at approximately $12,944,000. UBS Group AG increased its position in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after acquiring an additional 2,676,707 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of SoundHound AI by 140.5% during the fourth 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. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.