SoundHound AI (NASDAQ:SOUN) Trading Up 1.2% – Still a Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) rose 1.2% on Thursday . The company traded as high as $6.11 and last traded at $6.00. Approximately 16,545,044 shares traded hands during trading, a decline of 42% from the average session volume of 28,292,652 shares. The stock had previously closed at $5.93.

SoundHound AI News Summary

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

• Positive Sentiment: Analysts tracked by American Banking News have an average $13.00 price target for SoundHound AI, well above recent trading levels. The consensus suggests significant potential upside if the company executes on its growth strategy. SoundHound AI Receives $13.00 Average Price Target from Analysts
• Positive Sentiment: SoundHound’s Asia business has extended its deal momentum to five consecutive quarters, including new wins in China and India and continued expansion of its OASYS automotive platform. The progress supports the company’s international growth and automotive AI opportunity. The Zacks Analyst Blog Highlights SoundHound AI
• Positive Sentiment: SoundHound’s completed LivePerson acquisition and appointment of former LivePerson executive John Collins as CFO could improve financial integration and support a push toward sustainable profitability. The company’s recent strong second-quarter results and raised full-year guidance add to the bullish case. SoundHound AI’s LivePerson Deal and New CFO Shift Its Profitability Narrative?
• Neutral Sentiment: SoundHound is being compared with NVIDIA as a faster-growing but much smaller AI company. Its narrower voice-AI focus and continuing losses make SOUN a higher-risk growth investment despite its expansion potential. The Zacks Analyst Blog Highlights SoundHound AI
• Negative Sentiment: CEO Keyvan Mohajer, COO Michael Zagorsek, SVP Majid Emami and insider James Hom collectively sold approximately 285,863 shares at $6.33 per share. The filings identify tax withholding related to vested equity awards as the reason, reducing the bearish signal, although the insider selling may still weigh on sentiment. SoundHound AI Insider Buying and Selling

Analyst Ratings Changes

Several equities analysts have commented on SOUN shares. Piper Sandler lowered their price objective on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. DA Davidson reduced their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. Finally, Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Sunday, September 13th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, SoundHound AI currently has a consensus rating of “Moderate Buy” and an average price target of $13.00.

SoundHound AI Stock Performance

The stock has a 50-day moving average of $6.68 and a two-hundred day moving average of $7.21. The company has a market cap of $2.63 billion, a P/E ratio of -15.60 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The business had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same period in the previous year, the company posted ($0.19) earnings per share. The company’s revenue for the quarter was up 45.0% compared to the same quarter last year. Research analysts predict that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insider Activity

In other SoundHound AI news, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the transaction, the chief operating officer directly owned 2,600,231 shares of the company’s stock, valued at approximately $16,459,462.23. The trade was a 2.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the transaction, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. This represents a 4.44% 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 have sold a total of 287,206 shares of company stock valued at $1,819,115 in the last quarter. 8.84% of the stock is owned by company insiders.

Institutional Trading of SoundHound AI

Several institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC increased its holdings in shares of SoundHound AI by 38.1% in the 2nd quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock worth $855,000 after purchasing an additional 36,415 shares in the last quarter. IFP Advisors Inc boosted its position in shares of SoundHound AI by 10.7% during the second quarter. IFP Advisors Inc now owns 32,748 shares of the company’s stock valued at $212,000 after buying an additional 3,163 shares during the last quarter. Allworth Financial LP increased its holdings in SoundHound AI by 12.7% in the 2nd quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock worth $146,000 after buying an additional 2,537 shares in the last quarter. Waverly Advisors LLC grew its holdings in SoundHound AI by 6.9% during the second quarter. Waverly Advisors LLC now owns 64,132 shares of the company’s stock valued at $415,000 after purchasing an additional 4,138 shares during the period. Finally, Nykredit A S purchased a new stake in SoundHound AI in the 2nd quarter worth approximately $165,000. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.