SoundHound AI (NASDAQ:SOUN) Trading 11.6% Higher – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) traded up 11.6% on Tuesday . The stock traded as high as $11.03 and last traded at $10.69. 31,789,146 shares were traded during mid-day trading, a decline of 16% from the average session volume of 38,011,167 shares. The stock had previously closed at $9.58.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. HC Wainwright lowered their target price on SoundHound AI from $26.00 to $18.00 and set a “buy” rating on the stock in a research note on Monday, May 12th. DA Davidson lowered their target price on SoundHound AI from $13.00 to $10.00 and set a “buy” rating on the stock in a research note on Monday, April 14th. Piper Sandler assumed coverage on SoundHound AI in a research note on Tuesday. They issued an “overweight” rating and a $12.00 target price on the stock. Wedbush lowered their target price on SoundHound AI from $22.00 to $15.00 and set an “outperform” rating on the stock in a research note on Friday, May 9th. Finally, Cantor Fitzgerald upgraded SoundHound AI to a “hold” rating in a research note on Monday, February 24th. Four research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $10.50.

SoundHound AI Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58. The stock has a market capitalization of $4.43 billion, a P/E ratio of -30.43 and a beta of 2.71. The company has a fifty day moving average of $9.09 and a two-hundred day moving average of $11.74.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.03. The firm had revenue of $29.13 million during the quarter, compared to analyst estimates of $30.38 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. SoundHound AI’s quarterly revenue was up 151.2% on a year-over-year basis. During the same period in the previous year, the company earned ($0.07) earnings per share. On average, equities analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Activity

In other news, CTO Timothy Stonehocker sold 44,157 shares of the company’s stock in a transaction that occurred on Wednesday, May 14th. The stock was sold at an average price of $12.00, for a total transaction of $529,884.00. Following the completion of the transaction, the chief technology officer now directly owns 723,009 shares of the company’s stock, valued at approximately $8,676,108. This represents a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider James Ming Hom sold 28,388 shares of the stock in a transaction that occurred on Thursday, March 20th. The stock was sold at an average price of $9.90, for a total value of $281,041.20. Following the completion of the transaction, the insider now directly owns 689,652 shares of the company’s stock, valued at $6,827,554.80. This trade represents a 3.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 548,537 shares of company stock valued at $5,567,760. 12.28% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Blue Trust Inc. lifted its position in SoundHound AI by 197.6% in the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company’s stock worth $25,000 after purchasing an additional 830 shares during the period. Sound Income Strategies LLC lifted its position in SoundHound AI by 2,542.0% in the fourth quarter. Sound Income Strategies LLC now owns 1,321 shares of the company’s stock worth $26,000 after purchasing an additional 1,271 shares during the period. Orion Capital Management LLC acquired a new stake in SoundHound AI in the fourth quarter worth approximately $30,000. Compagnie Lombard Odier SCmA acquired a new stake in shares of SoundHound AI during the 4th quarter valued at $40,000. Finally, Golden State Wealth Management LLC acquired a new stake in shares of SoundHound AI during the 4th quarter valued at $42,000. 19.28% of the stock is owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.