SoundHound AI (NASDAQ:SOUN) Trading Up 8.9% - Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price was up 8.9% during trading on Friday . The company traded as high as $7.69 and last traded at $7.60. Approximately 26,256,723 shares were traded during mid-day trading, a decline of 24% from the average daily volume of 34,698,801 shares. The stock had previously closed at $6.98.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on SOUN shares. Wedbush reiterated an "outperform" rating and issued a $9.00 target price on shares of SoundHound AI in a research report on Thursday, September 26th. LADENBURG THALM/SH SH restated a "neutral" rating and issued a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, November 13th. Barclays restated a "neutral" rating and issued a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, November 13th. Northland Securities boosted their price target on shares of 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, DA Davidson reissued a "buy" rating and set a $9.50 price objective on shares of SoundHound AI in a research note on Monday, September 30th. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $7.64.

SoundHound AI Stock Performance

The firm has a 50-day moving average of $5.44 and a 200-day moving average of $5.01. 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 stock has a market capitalization of $3.03 billion, a price-to-earnings ratio of -21.11 and a beta of 2.71.

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

Insider Activity at SoundHound AI

In related news, CTO Timothy Stonehocker sold 20,337 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 $99,244.56. Following the completion of the transaction, the chief technology officer now owns 1,039,194 shares in the company, valued at $5,071,266.72. The trade was a 1.92 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Nitesh Sharan sold 39,728 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 $193,872.64. Following the completion of the sale, the chief financial officer now owns 1,560,411 shares in the company, valued at $7,614,805.68. The trade was a 2.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 277,275 shares of company stock valued at $1,355,644 in the last three months. 12.28% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

Several institutional investors have recently made changes to their positions in SOUN. Vanguard Group Inc. grew its stake in SoundHound AI by 16.1% during the first quarter. Vanguard Group Inc. now owns 16,070,453 shares of the company's stock worth $94,655,000 after buying an additional 2,226,471 shares during the last quarter. State Street Corp increased its stake in SoundHound AI by 0.6% in the 3rd quarter. State Street Corp now owns 7,197,414 shares of the company's stock valued at $33,540,000 after buying an additional 42,869 shares during the last quarter. Geode Capital Management LLC grew its position in shares of SoundHound AI by 9.1% in the 3rd 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. Charles Schwab Investment Management Inc. grew its position in shares of SoundHound AI by 7.9% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 2,582,206 shares of the company's stock valued at $12,033,000 after acquiring an additional 189,109 shares during the period. Finally, Bank of New York Mellon Corp boosted its holdings in shares of SoundHound AI by 92.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company's stock worth $3,940,000 after buying an additional 479,912 shares during the period. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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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