SoundHound AI (NASDAQ:SOUN) Trading Up 3.1% – Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were up 3.1% during mid-day trading on Tuesday . The company traded as high as $6.85 and last traded at $6.69. 32,502,359 shares traded hands during mid-day trading, an increase of 19% from the average daily volume of 27,395,379 shares. The stock had previously closed at $6.49.

Analysts Set New Price Targets

A number of equities analysts have weighed in on SOUN shares. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, DA Davidson restated a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a research note on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 2.5%

The firm has a market cap of $2.74 billion, a P/E ratio of -13.42 and a beta of 2.62. The business’s 50 day moving average is $7.49 and its 200-day moving average is $8.12.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate 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 company had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. During the same period in the previous year, the firm posted ($0.06) EPS. SoundHound AI’s revenue for the quarter was up 51.7% on a year-over-year basis. As a group, equities analysts predict that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the sale, the chief executive officer owned 1,947,237 shares in the company, valued at $14,526,388.02. This represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the transaction, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their position. 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. Insiders sold 268,022 shares of company stock valued at $1,999,444 over the last 90 days. Corporate insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after acquiring an additional 1,909,868 shares during the period. Rakuten Securities Inc. boosted its stake in SoundHound AI by 877.9% during the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock valued at $3,326,000 after purchasing an additional 299,492 shares during the period. UBS Group AG grew its position in SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after purchasing an additional 2,676,707 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in SoundHound AI by 140.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after purchasing an additional 155,743 shares during the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after purchasing an additional 273,097 shares during the period. Institutional investors own 19.28% of the company’s stock.

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.