SoundHound AI (NASDAQ:SOUN) Trading 6.5% Higher – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded up 6.5% during mid-day trading on Monday . The company traded as high as $11.99 and last traded at $11.95. 23,756,859 shares traded hands during trading, a decline of 48% from the average session volume of 45,507,918 shares. The stock had previously closed at $11.22.

Wall Street Analyst Weigh In

Several equities analysts have commented on SOUN shares. Northland Securities upgraded shares of SoundHound AI from a “market perform” rating to an “outperform” rating and set a $14.50 price objective for the company in a research report on Friday, August 8th. Oppenheimer initiated coverage on shares of SoundHound AI in a report on Thursday, September 11th. They issued a “market perform” rating for the company. Wedbush reissued an “outperform” rating and set a $16.00 price objective on shares of SoundHound AI in a research note on Thursday, September 11th. HC Wainwright upped their price objective on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research report on Thursday, October 16th. Finally, Wall Street Zen cut SoundHound AI from a “hold” rating to a “sell” rating in a report on Saturday, August 9th. 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 assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $17.42.

SoundHound AI Trading Up 6.5%

The company has a market capitalization of $5.02 billion, a PE ratio of -14.23 and a beta of 2.60. The stock’s 50-day moving average is $16.28 and its two-hundred day moving average is $13.24.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The firm had revenue of $42.05 million for the quarter, compared to analysts’ expectations of $40.48 million. During the same quarter in the prior year, the firm posted ($0.04) earnings per share. The company’s quarterly revenue was up 67.6% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. On average, equities research analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, VP Majid Emami sold 41,167 shares of SoundHound AI stock in a transaction dated Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total transaction of $823,340.00. Following the completion of the sale, the vice president owned 608,186 shares in the company, valued at $12,163,720. This trade represents a 6.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, COO Michael Zagorsek sold 69,837 shares of the business’s stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $16.00, for a total transaction of $1,117,392.00. Following the completion of the sale, the chief operating officer directly owned 1,860,790 shares of the company’s stock, valued at approximately $29,772,640. This trade represents a 3.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 787,260 shares of company stock valued at $13,973,056. Insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of the stock. CIBC Bancorp USA Inc. bought a new position in SoundHound AI in the third quarter worth approximately $628,000. WBI Investments LLC purchased a new stake in shares of SoundHound AI in the 3rd quarter worth $887,000. Captrust Financial Advisors grew its position in shares of SoundHound AI by 136.0% during the 3rd quarter. Captrust Financial Advisors now owns 215,091 shares of the company’s stock worth $3,459,000 after buying an additional 123,960 shares in the last quarter. Danske Bank A S bought a new position in shares of SoundHound AI during the 3rd quarter worth $26,000. Finally, Advisory Services Network LLC increased its stake in shares of SoundHound AI by 262.1% during the third quarter. Advisory Services Network LLC now owns 37,716 shares of the company’s stock valued at $606,000 after buying an additional 27,300 shares during the period. Institutional investors own 19.28% of the company’s stock.

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.