SoundHound AI (NASDAQ:SOUN) Trading 11.2% Higher – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shares shot up 11.2% on Wednesday . The stock traded as high as $22.44 and last traded at $21.56. 44,238,677 shares changed hands during mid-day trading, an increase of 13% from the average session volume of 39,280,723 shares. The stock had previously closed at $19.39.

Analyst Ratings Changes

A number of equities analysts recently commented on SOUN shares. LADENBURG THALM/SH SH reiterated a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. DA Davidson restated a “buy” rating and set a $9.50 target price on shares of SoundHound AI in a report on Monday, September 30th. Wedbush increased their price target on SoundHound AI from $10.00 to $22.00 and gave the company an “outperform” rating in a research report on Monday. Barclays reissued a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a research report on Wednesday, November 13th. Finally, HC Wainwright lifted their target price on SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a research note on Thursday, November 14th. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $9.50.

SoundHound AI Stock Up 21.4 %

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 firm has a 50-day simple moving average of $8.07 and a two-hundred day simple moving average of $5.90. The stock has a market cap of $8.70 billion, a P/E ratio of -65.39 and a beta of 3.03.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.01. The firm had revenue of $25.10 million for the quarter, compared to analyst estimates of $23.02 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. The business’s revenue for the quarter was up 88.7% on a year-over-year basis. During the same period last year, the firm posted ($0.09) earnings per share. Equities research analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, Director Lawrence Marcus sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, December 12th. The stock was sold at an average price of $14.00, for a total transaction of $350,000.00. Following the sale, the director now directly owns 128,117 shares in the company, valued at $1,793,638. This represents a 16.33 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Keyvan Mohajer sold 90,641 shares of the business’s stock in a transaction dated Friday, September 20th. The stock was sold at an average price of $4.88, for a total value of $442,328.08. Following the sale, the chief executive officer now 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 disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,060,416 shares of company stock valued at $26,684,544. 12.28% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SOUN. Carnegie Investment Counsel purchased a new position in SoundHound AI during the third quarter worth about $4,193,000. Geode Capital Management LLC raised its holdings in shares of 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 buying an additional 602,311 shares during the last quarter. Bank of New York Mellon Corp grew its stake 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 purchasing an additional 479,912 shares during the period. Shellback Capital LP purchased a new stake in shares of SoundHound AI in the 2nd quarter worth about $1,196,000. Finally, Squarepoint Ops LLC boosted its stake in shares of SoundHound AI by 818.0% during the second quarter. Squarepoint Ops LLC now owns 231,168 shares of the company’s stock valued at $913,000 after acquiring an additional 205,985 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.