SoundHound AI (NASDAQ:SOUN) Stock Price Up 3.1% – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded up 3.1% during mid-day trading on Wednesday. The company traded as high as $6.15 and last traded at $6.02. Approximately 17,231,676 shares were traded during trading, a decline of 38% from the average session volume of 27,666,730 shares. The stock had previously closed at $5.84.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Kia Sorento launch in India: SoundHound’s voice and real-time generative AI technology is now deployed in Kia’s Sorento SUV in India. The launch expands SoundHound’s presence in a large, fast-growing automotive market and supports the company’s strategy of winning international vehicle programs. Kia Sorento debuts SoundHound generative voice AI in India
• Positive Sentiment: Broader quick-service restaurant expansion: SoundHound added three restaurant chains to its customer base, while reporting 100% renewals among key accounts and broader rollouts. The developments indicate continued adoption of voice AI in the quick-service restaurant sector and could support future recurring revenue growth. SoundHound Adds 3 Restaurant Chains
• Positive Sentiment: Investor reaction: Coverage characterized the India product launch as a category-first milestone and linked it to the stock’s rise, suggesting that investors viewed the Kia deployment as evidence of growing commercial momentum. SoundHound AI Jumps on India Product Launch
• Neutral Sentiment: Short-squeeze interest: SoundHound remains a potential short-squeeze candidate because of elevated short interest and days to cover. This may amplify gains if positive catalysts continue, but it also increases volatility and does not change the company’s fundamentals. Short-Squeeze Candidates
• Negative Sentiment: Analyst caution: An analyst cut SoundHound’s price target to $6 while maintaining a neutral rating, signaling that valuation, execution, or profitability risks remain despite the company’s expanding customer footprint. SoundHound AI Stock Target Cut

Analyst Ratings Changes

Several brokerages have weighed in on SOUN. DA Davidson dropped their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Friday, September 11th. Wall Street Zen downgraded SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday. Finally, Piper Sandler cut their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $12.75.

SoundHound AI Stock Up 3.3%

The firm has a 50 day simple moving average of $6.62 and a two-hundred day simple moving average of $7.10. The stock has a market capitalization of $2.68 billion, a P/E ratio of -15.87 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating 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 company had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same quarter last year, the company posted ($0.19) EPS. The company’s revenue for the quarter was up 45.0% compared to the same quarter last year. On average, research analysts predict that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Keyvan Mohajer sold 137,290 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $869,045.70. Following the sale, the chief executive officer directly owned 3,684,947 shares of the company’s stock, valued at approximately $23,325,714.51. The trade was a 3.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $450,145.29. Following the sale, the chief operating officer directly owned 2,600,231 shares in the company, valued at $16,459,462.23. This trade represents a 2.66% decrease in their ownership of the stock. 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 sold a total of 288,758 shares of company stock worth $1,828,598 in the last ninety days. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Geode Capital Management LLC boosted its position in SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after buying an additional 273,097 shares in the last quarter. Swiss National Bank lifted its stake in shares of SoundHound AI by 3.7% in the 1st quarter. Swiss National Bank now owns 767,100 shares of the company’s stock valued at $5,270,000 after acquiring an additional 27,300 shares during the last quarter. California State Teachers Retirement System lifted its stake in shares of SoundHound AI by 25.0% in the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after acquiring an additional 87,998 shares during the last quarter. AXQ Capital LP boosted its holdings in shares of SoundHound AI by 395.6% during the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after acquiring an additional 203,345 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new stake in shares of SoundHound AI during the 1st quarter valued at $1,606,000. Institutional investors own 19.28% of the company’s stock.

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.