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

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price gapped up before the market opened on Friday . The stock had previously closed at $6.98, but opened at $7.35. SoundHound AI shares last traded at $7.36, with a volume of 18,635,574 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on SOUN. Wedbush restated an "outperform" rating and issued a $9.00 target price on shares of SoundHound AI in a report on Thursday, September 26th. DA Davidson reaffirmed a "buy" rating and set a $9.50 price target on shares of SoundHound AI in a research note on Monday, September 30th. HC Wainwright upped their target price on SoundHound AI from $7.00 to $8.00 and gave the stock a "buy" rating in a report on Thursday, November 14th. Barclays reaffirmed a "neutral" rating and issued a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. Finally, Northland Securities upped their price target 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. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $7.64.

SoundHound AI Stock Up 18.2 %

The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The business's 50-day moving average is $5.51 and its 200-day moving average is $5.03. The company has a market capitalization of $2.96 billion, a price-to-earnings ratio of -22.92 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.01. The business had revenue of $25.10 million for the quarter, compared to analyst estimates of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The company's revenue for the quarter was up 88.7% on a year-over-year basis. During the same period in the prior year, the company posted ($0.09) EPS. As a group, equities analysts predict that SoundHound AI, Inc. will post -0.37 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Keyvan Mohajer sold 90,641 shares of the business'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 transaction, the chief executive officer now directly owns 2,362,692 shares in the company, valued at $11,529,936.96. The trade was a 3.69 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Michael Zagorsek sold 42,001 shares of the stock in a transaction that occurred on Friday, September 20th. The shares were sold at an average price of $4.88, for a total transaction of $204,964.88. Following the completion of the sale, the chief operating officer now directly owns 1,473,322 shares of the company's stock, valued at approximately $7,189,811.36. This trade represents a 2.77 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 277,275 shares of company stock worth $1,355,644. Insiders own 12.28% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently modified their holdings of the company. Kings Path Partners LLC acquired a new position in shares of SoundHound AI in the second quarter valued at approximately $28,000. NBC Securities Inc. increased its holdings in SoundHound AI by 97.8% in the third quarter. NBC Securities Inc. now owns 7,720 shares of the company's stock valued at $35,000 after buying an additional 3,818 shares during the last quarter. International Assets Investment Management LLC acquired a new position in shares of SoundHound AI during the 2nd quarter worth about $31,000. Farther Finance Advisors LLC boosted its holdings in SoundHound AI by 298.5% in the third quarter. Farther Finance Advisors LLC now owns 8,966 shares of the company's stock valued at $42,000 after purchasing an additional 6,716 shares in the last quarter. Finally, Amalgamated Bank lifted its position in shares of SoundHound AI by 108.0% during the 2nd quarter. Amalgamated Bank now owns 9,819 shares of the company's stock worth $39,000 after buying an additional 5,099 shares during the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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.