SoundHound AI (NASDAQ:SOUN) Shares Up 4.1% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were up 4.1% during mid-day trading on Monday . The stock traded as high as $6.73 and last traded at $6.41. Approximately 42,752,863 shares changed hands during mid-day trading, an increase of 52% from the average daily volume of 28,126,789 shares. The stock had previously closed at $6.16.

Trending Headlines about SoundHound AI

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: LivePerson is urging shareholders to vote in favor of its previously announced transaction with SoundHound AI. The deal could expand SoundHound’s conversational-AI capabilities and customer base, although shareholder approval remains an important next step. LivePerson will also hold an investor town hall on August 5. LivePerson Stockholders: Vote Today FOR Transaction with SoundHound AI
• Positive Sentiment: A bullish outlook argues that SoundHound could reaccelerate growth over the next year, potentially giving the stock renewed momentum if the company converts its artificial-intelligence pipeline into stronger revenue and customer adoption. Prediction: $1,000 Invested in SoundHound AI Stock Will Be Worth This Much in 1 Year
• Neutral Sentiment: SoundHound is scheduled to report second-quarter results next week, making the upcoming release a near-term catalyst. Investors will likely focus on revenue growth, losses, customer wins and management’s outlook. Should You Buy SoundHound AI Stock Before Aug. 5?
• Negative Sentiment: A comparison with Five9 highlights risks for SOUN: Five9 is presented as having profitability, stronger cash flow and a lower valuation, potentially making SoundHound look expensive and financially riskier despite its growth opportunity. SoundHound vs. Five9: Which Customer AI Stock Offers Better Growth?
• Negative Sentiment: The latest trading-session report noted that SoundHound declined even as the broader market improved, suggesting company-specific selling pressure and continued investor caution around its high-growth, loss-making business. SoundHound AI Stock Declines While Market Improves

Wall Street Analysts Forecast Growth

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

SoundHound AI Price Performance

The stock has a 50 day moving average of $7.09 and a two-hundred day moving average of $7.85. The stock has a market capitalization of $2.70 billion, a PE ratio of -13.28 and a beta of 2.62.

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

Insiders Place Their Bets

In related news, COO Michael Zagorsek sold 64,994 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $484,855.24. Following the sale, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at approximately $12,454,447.62. The trade was a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the transaction, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. The trade was a 5.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 268,022 shares of company stock worth $1,999,444. Insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently modified their holdings of the company. Morgan Stanley increased its stake in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares in the last quarter. UBS Group AG boosted its position in SoundHound AI by 77.6% during the fourth 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 in the last quarter. Voloridge Investment Management LLC boosted its position in SoundHound AI by 2,259.7% during the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock worth $21,929,000 after purchasing an additional 2,106,298 shares in the last quarter. Vanguard Group Inc. grew its holdings in SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after purchasing an additional 1,909,868 shares during the last quarter. Finally, Jump Financial LLC purchased a new position in shares of SoundHound AI in the third quarter valued at $21,679,000. Hedge funds and other 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.