SoundHound AI (NASDAQ:SOUN) Trading Up 7.7% - Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price shot up 7.7% on Thursday . The stock traded as high as $9.57 and last traded at $9.42. 9,985,323 shares were traded during trading, a decline of 74% from the average session volume of 37,845,929 shares. The stock had previously closed at $8.75.

Analysts Set New Price Targets

Several brokerages have recently issued reports on SOUN. Northland Securities upped their price objective on SoundHound AI from $6.00 to $8.00 and gave the company a "market perform" rating in a research report on Tuesday, January 14th. Cantor Fitzgerald raised shares of SoundHound AI to a "hold" rating in a research note on Monday, February 24th. DA Davidson cut their price target on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a report on Monday, April 14th. Finally, HC Wainwright reaffirmed a "buy" rating and set a $26.00 price objective on shares of SoundHound AI in a research note on Monday, March 3rd. Four equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $12.43.

SoundHound AI Price Performance

The company's fifty day moving average is $9.09 and its two-hundred day moving average is $10.94. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.58 and a current ratio of 2.58. The firm has a market cap of $3.78 billion, a price-to-earnings ratio of -26.35 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, February 27th. The company reported ($0.69) 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 company had revenue of $34.54 million for the quarter, compared to analysts' expectations of $33.70 million. Equities research analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Keyvan Mohajer sold 138,895 shares of SoundHound AI stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $10.08, for a total value of $1,400,061.60. Following the completion of the transaction, the chief executive officer now directly owns 1,764,166 shares in the company, valued at approximately $17,782,793.28. This trade represents a 7.30 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider James Ming Hom sold 28,388 shares of the company's stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total value of $281,041.20. Following the sale, the insider now owns 689,652 shares in the company, valued at $6,827,554.80. The trade was a 3.95 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 500,565 shares of company stock worth $4,999,726 in the last three months. 12.28% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently added to or reduced their stakes in the company. Kieckhefer Group LLC acquired a new stake in shares of SoundHound AI during the fourth quarter worth $3,432,000. Oriental Harbor Investment Fund bought a new position in SoundHound AI in the fourth quarter worth about $8,964,000. Geode Capital Management LLC boosted its stake in SoundHound AI by 9.1% in the third quarter. Geode Capital Management LLC now owns 7,193,599 shares of the company's stock valued at $33,529,000 after acquiring an additional 602,311 shares during the period. Wealth Effects LLC bought a new position in shares of SoundHound AI during the fourth quarter valued at approximately $357,000. Finally, Franklin Resources Inc. acquired a new stake in shares of SoundHound AI during the 3rd quarter worth approximately $177,000. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Company Profile

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.

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