SoundHound AI (NASDAQ:SOUN) Shares Gap Up – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) gapped up prior to trading on Tuesday . The stock had previously closed at $14.24, but opened at $14.85. SoundHound AI shares last traded at $15.55, with a volume of 10,700,796 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. HC Wainwright reissued a “buy” rating and set a $26.00 price target on shares of SoundHound AI in a report on Monday, January 13th. Northland Securities raised their price target on SoundHound AI from $6.00 to $8.00 and gave the company a “market perform” rating in a report on Tuesday, January 14th. Wedbush raised their price target on SoundHound AI from $10.00 to $22.00 and gave the company an “outperform” rating in a report on Monday, December 16th. LADENBURG THALM/SH SH reissued a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a report on Wednesday, November 13th. Finally, Barclays reissued a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a report on Wednesday, November 13th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $12.36.

SoundHound AI Price Performance

The company has a 50 day moving average of $15.75 and a two-hundred day moving average of $8.94. The firm has a market cap of $5.70 billion, a P/E ratio of -42.37 and a beta of 2.56. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13.

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

Insider Activity at SoundHound AI

In related news, VP Majid Emami sold 368,662 shares of the stock in a transaction on Friday, December 6th. The stock was sold at an average price of $15.00, for a total value of $5,529,930.00. Following the completion of the transaction, the vice president now owns 735,685 shares in the company, valued at $11,035,275. This trade represents a 33.38 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Keyvan Mohajer sold 156,288 shares of the firm’s stock in a transaction dated Tuesday, December 24th. The stock was sold at an average price of $20.20, for a total value of $3,157,017.60. Following the sale, the chief executive officer now owns 2,021,666 shares of the company’s stock, valued at $40,837,653.20. The trade was a 7.18 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 2,782,918 shares of company stock worth $45,391,343 in the last quarter. 12.28% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently bought and sold shares of the business. IFP Advisors Inc boosted its position in SoundHound AI by 86.6% during the 4th quarter. IFP Advisors Inc now owns 90,865 shares of the company’s stock worth $1,803,000 after acquiring an additional 42,174 shares during the period. Sigma Planning Corp boosted its position in SoundHound AI by 26.6% during the 4th quarter. Sigma Planning Corp now owns 27,398 shares of the company’s stock worth $544,000 after acquiring an additional 5,758 shares during the period. Lloyd Advisory Services LLC. acquired a new stake in SoundHound AI during the 4th quarter worth about $238,000. New York State Common Retirement Fund boosted its position in SoundHound AI by 11.4% during the 4th quarter. New York State Common Retirement Fund now owns 90,962 shares of the company’s stock worth $1,805,000 after acquiring an additional 9,300 shares during the period. Finally, C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors purchased a new stake in shares of SoundHound AI during the 4th quarter worth about $187,000. 19.28% of the stock is currently 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.