SoundHound AI (NASDAQ:SOUN) Trading 4.3% Higher – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was up 4.3% on Monday . The company traded as high as $9.75 and last traded at $9.49. Approximately 11,508,246 shares traded hands during trading, a decline of 70% from the average daily volume of 38,863,877 shares. The stock had previously closed at $9.10.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on SOUN shares. Wedbush cut their target price on shares of SoundHound AI from $22.00 to $15.00 and set an “outperform” rating for the company in a research report on Friday, May 9th. Cantor Fitzgerald raised shares of SoundHound AI to a “hold” rating in a research report on Monday, February 24th. Piper Sandler started coverage on shares of SoundHound AI in a research report on Tuesday, May 27th. They set an “overweight” rating and a $12.00 target price for the company. DA Davidson cut their target price on shares of SoundHound AI from $13.00 to $10.00 and set a “buy” rating for the company in a research report on Monday, April 14th. Finally, HC Wainwright cut their target price on shares of SoundHound AI from $26.00 to $18.00 and set a “buy” rating for the company in a research report on Monday, May 12th. Four research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, SoundHound AI has a consensus rating of “Moderate Buy” and a consensus price target of $10.50.

SoundHound AI Stock Performance

The firm has a market cap of $3.87 billion, a P/E ratio of -26.74 and a beta of 2.64. The stock’s 50 day moving average is $9.46 and its two-hundred day moving average is $12.02. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

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

Insider Buying and Selling at SoundHound AI

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 shares were sold at an average price of $12.00, for a total transaction of $529,884.00. Following the transaction, the chief technology officer now directly owns 723,009 shares in the company, valued at approximately $8,676,108. This represents a 5.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Majid Emami sold 132,352 shares of the stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $10.04, for a total transaction of $1,328,814.08. Following the completion of the transaction, the vice president now owns 537,482 shares in the company, valued at $5,396,319.28. This represents a 19.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 680,889 shares of company stock worth $6,896,574 over the last ninety days. Corporate insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Blue Trust Inc. lifted its holdings in SoundHound AI by 197.6% in the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company’s stock valued at $25,000 after buying an additional 830 shares during the period. Rhumbline Advisers increased its stake in SoundHound AI by 10.5% in the fourth quarter. Rhumbline Advisers now owns 419,676 shares of the company’s stock valued at $8,326,000 after purchasing an additional 39,795 shares in the last quarter. Nations Financial Group Inc. IA ADV bought a new stake in SoundHound AI in the fourth quarter valued at approximately $766,000. Allworth Financial LP increased its stake in SoundHound AI by 65.2% in the fourth quarter. Allworth Financial LP now owns 9,909 shares of the company’s stock valued at $197,000 after purchasing an additional 3,909 shares in the last quarter. Finally, Strategic Financial Concepts LLC bought a new stake in SoundHound AI in the fourth quarter valued at approximately $207,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

About SoundHound AI

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.