SoundHound AI (NASDAQ:SOUN) Stock Price Up 12.3% - Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) traded up 12.3% on Friday . The stock traded as high as $10.00 and last traded at $10.01. 16,885,682 shares traded hands during mid-day trading, a decline of 59% from the average session volume of 41,148,432 shares. The stock had previously closed at $8.91.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Wedbush upped their target price on SoundHound AI from $10.00 to $22.00 and gave the stock an "outperform" rating in a report on Monday, December 16th. DA Davidson upped their target price on SoundHound AI from $9.50 to $13.00 and gave the stock a "buy" rating in a report on Friday, February 28th. Northland Securities upped their target price on SoundHound AI from $6.00 to $8.00 and gave the stock a "market perform" rating in a report on Tuesday, January 14th. HC Wainwright reiterated a "buy" rating and issued a $26.00 target price on shares of SoundHound AI in a report on Monday, March 3rd. Finally, Cantor Fitzgerald raised SoundHound AI to a "hold" rating in a research report on Monday, February 24th. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $12.86.

SoundHound AI Trading Up 2.9 %

The stock has a market capitalization of $3.87 billion, a P/E ratio of -27.36 and a beta of 2.62. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13. The company has a 50-day moving average price of $12.48 and a 200 day moving average price of $10.33.

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SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, February 27th. The company reported ($0.69) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.58). SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The business had revenue of $34.54 million for the quarter, compared to analyst estimates of $33.70 million. On average, research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 156,288 shares of the company's stock in a transaction dated Tuesday, December 24th. The stock was sold at an average price of $20.20, for a total transaction of $3,157,017.60. Following the transaction, the chief executive officer now directly owns 2,021,666 shares of the company's stock, valued at $40,837,653.20. This represents a 7.18 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CTO Timothy Stonehocker sold 34,407 shares of the company's stock in a transaction dated Friday, December 20th. The shares were sold at an average price of $20.30, for a total value of $698,462.10. Following the transaction, the chief technology officer now directly owns 796,581 shares in the company, valued at $16,170,594.30. This represents a 4.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 524,676 shares of company stock valued at $10,638,694 in the last ninety days. Corporate insiders own 12.28% of the company's stock.

Institutional Trading of SoundHound AI

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in SoundHound AI by 35.6% during the 4th quarter. Vanguard Group Inc. now owns 32,031,662 shares of the company's stock valued at $635,508,000 after purchasing an additional 8,402,881 shares during the last quarter. Geode Capital Management LLC grew its stake in SoundHound AI by 4.4% during the 4th quarter. Geode Capital Management LLC now owns 7,509,496 shares of the company's stock valued at $149,024,000 after purchasing an additional 315,897 shares during the last quarter. State Street Corp grew its stake in SoundHound AI by 0.6% during the 3rd quarter. State Street Corp now owns 7,197,414 shares of the company's stock valued at $33,540,000 after purchasing an additional 42,869 shares during the last quarter. Northern Trust Corp boosted its stake in shares of SoundHound AI by 10.0% in the fourth quarter. Northern Trust Corp now owns 2,906,245 shares of the company's stock worth $57,660,000 after buying an additional 264,382 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its stake in shares of SoundHound AI by 5.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,725,693 shares of the company's stock worth $54,078,000 after buying an additional 143,487 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.