SoundHound AI (NASDAQ:SOUN) Trading 1.6% Higher – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was up 1.6% during trading on Wednesday . The stock traded as high as $10.79 and last traded at $10.62. Approximately 24,935,416 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 28,333,615 shares. The stock had previously closed at $10.45.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. HC Wainwright raised their price target on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a report on Thursday, October 16th. DA Davidson set a $14.00 target price on shares of SoundHound AI in a research report on Thursday, January 8th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Zacks Research downgraded shares of SoundHound AI from a “hold” rating to a “strong sell” rating in a research note on Monday, January 12th. Finally, Piper Sandler decreased their price objective on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $16.07.

SoundHound AI Trading Up 1.6%

The firm has a 50-day moving average price of $11.39 and a 200-day moving average price of $13.57. The stock has a market capitalization of $4.46 billion, a PE ratio of -12.64 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.06. The business had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The firm’s quarterly revenue was up 67.6% compared to the same quarter last year. During the same quarter last year, the company posted ($0.04) earnings per share. Sell-side analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 144,326 shares of the company’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $1,627,997.28. Following the transaction, the chief executive officer directly owned 2,198,287 shares in the company, valued at $24,796,677.36. This represents a 6.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Michael Zagorsek sold 73,406 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the sale, the chief operating officer directly owned 1,787,459 shares in the company, valued at $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 462,265 shares of company stock worth $5,216,518 in the last quarter. 9.17% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in SoundHound AI by 16.4% in the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after acquiring an additional 6,132,648 shares during the period. Jump Financial LLC purchased a new position in SoundHound AI during the 3rd quarter valued at $21,679,000. HRT Financial LP bought a new position in SoundHound AI in the 2nd quarter worth $11,914,000. Goldman Sachs Group Inc. raised its holdings in SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after purchasing an additional 1,085,473 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its position in shares of SoundHound AI by 91.6% in the 2nd quarter. Bank of New York Mellon Corp now owns 1,762,827 shares of the company’s stock worth $18,915,000 after purchasing an additional 842,973 shares during the period. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.