SoundHound AI (NASDAQ:SOUN) Trading 3% Higher – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares were up 3% during mid-day trading on Monday . The stock traded as high as $8.35 and last traded at $8.32. Approximately 25,107,599 shares traded hands during trading, a decline of 4% from the average daily volume of 26,190,830 shares. The stock had previously closed at $8.08.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Piper Sandler restated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. DA Davidson set a $14.00 price objective on SoundHound AI in a research report on Thursday, January 8th. Finally, HC Wainwright lowered their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, SoundHound AI currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Performance

The firm has a market capitalization of $3.52 billion, a PE ratio of -166.37 and a beta of 2.71. The company’s 50-day moving average price is $7.44 and its 200-day moving average price is $11.08.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.02). The business had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The company’s revenue for the quarter was up 59.4% on a year-over-year basis. During the same period in the previous year, the company earned ($0.05) EPS. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.34 earnings per share for the current year.

Insider Buying and Selling at SoundHound AI

In other news, insider James Ming Hom sold 31,019 shares of the firm’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the sale, the insider owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. This trade represents a 3.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Michael Zagorsek sold 52,968 shares of the firm’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the sale, the chief operating officer directly owned 1,734,491 shares in the company, valued at $11,777,193.89. This trade represents a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 307,973 shares of company stock worth $2,091,110. 9.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SOUN. Northwestern Mutual Wealth Management Co. grew its position in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC grew its position in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares during the last quarter. Danske Bank A S purchased a new position in shares of SoundHound AI in the 3rd quarter valued at $26,000. SHP Wealth Management purchased a new position in shares of SoundHound AI in the 4th quarter valued at $27,000. Finally, Financial Consulate Inc. purchased a new position in shares of SoundHound AI in the 3rd quarter valued at $32,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.