SoundHound AI (NASDAQ:SOUN) Shares Gap Up - Here's Why

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price gapped up prior to trading on Friday . The stock had previously closed at $5.03, but opened at $5.25. SoundHound AI shares last traded at $5.25, with a volume of 4,318,281 shares.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on SOUN shares. Wedbush restated an "outperform" rating and issued a $9.00 target price on shares of SoundHound AI in a report on Thursday, September 26th. HC Wainwright restated a "buy" rating and set a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, September 18th. DA Davidson reiterated a "buy" rating and issued a $9.50 target price on shares of SoundHound AI in a report on Monday, September 30th. Northland Securities boosted their target price on SoundHound AI from $5.50 to $6.00 and gave the company a "market perform" rating in a research report on Friday, August 9th. Finally, Cantor Fitzgerald upgraded SoundHound AI from a "neutral" rating to an "overweight" rating and raised their price target for the stock from $5.00 to $7.00 in a research report on Friday, August 9th. One analyst has rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $7.08.

SoundHound AI Price Performance

The stock has a market capitalization of $1.84 billion, a PE ratio of -13.18 and a beta of 2.73. The firm has a fifty day moving average price of $4.94 and a two-hundred day moving average price of $4.77.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Thursday, August 8th. The company reported ($0.11) earnings per share for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.02). The business had revenue of $13.46 million during the quarter, compared to analysts' expectations of $13.09 million. SoundHound AI had a negative return on equity of 93.28% and a negative net margin of 195.65%. The business's revenue for the quarter was up 53.8% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.10) EPS. On average, research analysts expect that SoundHound AI, Inc. will post -0.36 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, CEO Keyvan Mohajer sold 90,641 shares of the stock in a transaction that occurred on Friday, September 20th. The stock was sold at an average price of $4.88, for a total value of $442,328.08. Following the transaction, the chief executive officer now owns 2,362,692 shares of the company's stock, valued at $11,529,936.96. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other news, Director Lawrence Marcus sold 50,000 shares of the business's stock in a transaction dated Tuesday, August 20th. The shares were sold at an average price of $5.02, for a total value of $251,000.00. Following the completion of the sale, the director now owns 74,038 shares in the company, valued at approximately $371,670.76. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Keyvan Mohajer sold 90,641 shares of the company's stock in a transaction that occurred on Friday, September 20th. The stock was sold at an average price of $4.88, for a total transaction of $442,328.08. Following the completion of the sale, the chief executive officer now directly owns 2,362,692 shares of the company's stock, valued at $11,529,936.96. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 327,275 shares of company stock valued at $1,606,644 in the last three months. Company insiders own 12.28% 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. Kings Path Partners LLC acquired a new stake in SoundHound AI in the second quarter valued at approximately $28,000. NBC Securities Inc. boosted its position in shares of SoundHound AI by 97.8% in the 3rd quarter. NBC Securities Inc. now owns 7,720 shares of the company's stock worth $35,000 after purchasing an additional 3,818 shares in the last quarter. International Assets Investment Management LLC purchased a new position in SoundHound AI during the 2nd quarter worth $31,000. Farther Finance Advisors LLC increased its position in SoundHound AI by 298.5% during the 3rd quarter. Farther Finance Advisors LLC now owns 8,966 shares of the company's stock valued at $42,000 after buying an additional 6,716 shares in the last quarter. Finally, Amalgamated Bank raised its stake in SoundHound AI by 108.0% in the second quarter. Amalgamated Bank now owns 9,819 shares of the company's stock valued at $39,000 after buying an additional 5,099 shares during the last quarter. Hedge funds and other 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.