SoundHound AI (NASDAQ:SOUN) Stock Price Up 4.6% - Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price rose 4.6% during mid-day trading on Friday . The stock traded as high as $5.31 and last traded at $5.26. Approximately 5,058,404 shares changed hands during trading, a decline of 85% from the average daily volume of 33,852,609 shares. The stock had previously closed at $5.03.

Analyst Ratings Changes

SOUN has been the subject of several recent analyst reports. Cantor Fitzgerald upgraded shares of SoundHound AI from a "neutral" rating to an "overweight" rating and raised their price objective for the stock from $5.00 to $7.00 in a research report on Friday, August 9th. DA Davidson restated a "buy" rating and set a $9.50 price objective on shares of SoundHound AI in a research report on Monday, September 30th. 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. Wedbush restated an "outperform" rating and set a $9.00 price objective on shares of SoundHound AI in a research report on Thursday, September 26th. Finally, Northland Securities raised their price objective on shares of SoundHound AI from $5.50 to $6.00 and gave the stock a "market perform" rating in a research report on Friday, August 9th. One equities research analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $7.08.

SoundHound AI Stock Up 2.2 %

The firm has a market capitalization of $1.84 billion, a price-to-earnings ratio of -13.18 and a beta of 2.73. The business's 50-day simple moving average is $4.95 and its two-hundred day simple moving average is $4.78.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly 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). SoundHound AI had a negative net margin of 195.65% and a negative return on equity of 93.28%. The company had revenue of $13.46 million for the quarter, compared to analyst estimates of $13.09 million. During the same quarter in the prior year, the business earned ($0.10) earnings per share. SoundHound AI's revenue was up 53.8% on a year-over-year basis. Sell-side analysts anticipate that SoundHound AI, Inc. will post -0.36 earnings per share for the current year.

Insider Activity

In other news, insider James Ming Hom sold 21,024 shares of the firm's stock in a transaction that occurred on Friday, September 20th. The shares were sold at an average price of $4.88, for a total value of $102,597.12. Following the completion of the transaction, the insider now owns 865,965 shares of the company's stock, valued at approximately $4,225,909.20. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In other news, insider James Ming Hom sold 21,024 shares of the firm's stock in a transaction that occurred on Friday, September 20th. The shares were sold at an average price of $4.88, for a total value of $102,597.12. Following the completion of the transaction, the insider now owns 865,965 shares of the company's stock, valued at approximately $4,225,909.20. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Lawrence Marcus sold 50,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 20th. The shares were sold at an average price of $5.02, for a total transaction of $251,000.00. Following the completion of the transaction, the director now directly owns 74,038 shares of the company's stock, valued at approximately $371,670.76. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 327,275 shares of company stock valued at $1,606,644. 12.28% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in SoundHound AI by 16.1% in the first quarter. Vanguard Group Inc. now owns 16,070,453 shares of the company's stock worth $94,655,000 after acquiring an additional 2,226,471 shares during the last quarter. Baupost Group LLC MA purchased a new position in SoundHound AI in the first quarter worth approximately $6,659,000. Bank of New York Mellon Corp lifted its stake in SoundHound AI by 92.7% in the second quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company's stock worth $3,940,000 after acquiring an additional 479,912 shares during the last quarter. Carnegie Investment Counsel purchased a new position in SoundHound AI in the third quarter worth approximately $4,193,000. Finally, Janus Henderson Group PLC lifted its stake in SoundHound AI by 563.0% in the first quarter. Janus Henderson Group PLC now owns 482,731 shares of the company's stock worth $2,843,000 after acquiring an additional 409,917 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.