SoundHound AI (NASDAQ:SOUN) Stock Jumps 3.1% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was up 3.1% on Wednesday. The company traded as high as $6.15 and last traded at $6.02. 17,231,676 shares changed hands during trading, a decline of 38% from the average daily volume of 27,666,730 shares. The stock had previously closed at $5.84.

Analyst Upgrades and Downgrades

SOUN has been the topic of several research analyst reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research report on Friday, September 11th. Piper Sandler lowered their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. DA Davidson dropped their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Finally, Wall Street Zen downgraded SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $12.75.

SoundHound AI Stock Performance

The firm has a market cap of $2.69 billion, a price-to-earnings ratio of -15.92 and a beta of 2.73. The business has a fifty day simple moving average of $6.60 and a 200-day simple moving average of $7.08.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The firm had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same quarter in the prior year, the company posted ($0.19) earnings per share. The business’s revenue was up 45.0% on a year-over-year basis. On average, equities analysts anticipate that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, insider James Hom sold 38,730 shares of the firm’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the insider owned 1,105,555 shares of the company’s stock, valued at $6,998,163.15. This trade represents a 3.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the sale, the senior vice president directly owned 834,253 shares in the company, valued at $5,280,821.49. The trade was a 4.44% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 288,758 shares of company stock valued at $1,828,598. Corporate insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the company. Geode Capital Management LLC increased its stake in shares of SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after buying an additional 273,097 shares during the period. SG Americas Securities LLC acquired a new position in SoundHound AI in the 1st quarter worth about $1,606,000. AXQ Capital LP boosted its holdings in SoundHound AI by 395.6% in the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after buying an additional 203,345 shares during the last quarter. Corient Private Wealth LP lifted its holdings in SoundHound AI by 777.2% in the 2nd quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock valued at $1,144,000 after purchasing an additional 156,612 shares in the last quarter. Finally, Havemeyer Place LP acquired a new stake in shares of SoundHound AI in the fourth quarter valued at approximately $956,000. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.