SoundHound AI (NASDAQ:SOUN) Trading 2.3% Higher – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shares rose 2.3% during mid-day trading on Friday . The stock traded as high as $15.35 and last traded at $14.29. Approximately 34,487,000 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 65,540,227 shares. The stock had previously closed at $13.97.

Analysts Set New Price Targets

SOUN has been the subject of several research reports. Northland Securities upped their target price on SoundHound AI from $6.00 to $8.00 and gave the stock a “market perform” rating in a research note on Tuesday, January 14th. Wedbush increased their price objective on SoundHound AI from $10.00 to $22.00 and gave the company an “outperform” rating in a research note on Monday, December 16th. LADENBURG THALM/SH SH reissued a “neutral” rating and set a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. Barclays reissued a “neutral” rating and set a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. Finally, HC Wainwright reissued a “buy” rating and set a $26.00 price objective on shares of SoundHound AI in a research note on Monday, January 13th. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $12.36.

SoundHound AI Price Performance

The business has a 50 day moving average of $14.03 and a 200 day moving average of $8.15. The company has a market cap of $5.04 billion, a PE ratio of -37.89 and a beta of 2.63. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, topping analysts’ consensus estimates 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 company had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. During the same quarter last year, the firm posted ($0.09) earnings per share. The firm’s revenue was up 88.7% on a year-over-year basis. As a group, research analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, COO Michael Zagorsek sold 277,813 shares of the stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $21.25, for a total value of $5,903,526.25. Following the completion of the transaction, the chief operating officer now owns 1,473,322 shares in the company, valued at approximately $31,308,092.50. This represents a 15.86 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Eric R. Ball sold 30,000 shares of the stock in a transaction on Monday, November 25th. The stock was sold at an average price of $8.03, for a total value of $240,900.00. Following the completion of the transaction, the director now owns 110,907 shares of the company’s stock, valued at approximately $890,583.21. This trade represents a 21.29 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,782,918 shares of company stock valued at $45,391,343 over the last quarter. 12.28% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in the company. Avior Wealth Management LLC bought a new position in SoundHound AI in the fourth quarter worth $64,000. Burr Financial Services LLC bought a new position in shares of SoundHound AI during the fourth quarter valued at $462,000. Mutual Advisors LLC bought a new position in shares of SoundHound AI during the fourth quarter valued at $320,000. Janney Montgomery Scott LLC bought a new position in shares of SoundHound AI during the fourth quarter valued at $411,000. Finally, SG Americas Securities LLC increased its holdings in shares of SoundHound AI by 70.2% during the fourth quarter. SG Americas Securities LLC now owns 195,028 shares of the company’s stock valued at $3,869,000 after acquiring an additional 80,448 shares in the last quarter. Institutional investors own 19.28% of the company’s stock.

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.