SoundHound AI (NASDAQ:SOUN) Trading 4.2% Higher – Time to Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) rose 4.2% on Tuesday . The stock traded as high as $6.46 and last traded at $6.45. Approximately 10,070,668 shares changed hands during trading, a decline of 71% from the average daily volume of 34,474,207 shares. The stock had previously closed at $6.19.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on SOUN shares. 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. Northland Securities increased their target price on SoundHound AI from $5.50 to $6.00 and gave the stock a “market perform” rating in a report on Friday, August 9th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their price target for the company from $5.00 to $7.00 in a report on Friday, August 9th. DA Davidson restated a “buy” rating and set a $9.50 price objective on shares of SoundHound AI in a research note on Monday, September 30th. Finally, LADENBURG THALM/SH SH reiterated a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a research note on Wednesday, November 13th. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, SoundHound AI presently has a consensus rating of “Moderate Buy” and a consensus target price of $7.64.

SoundHound AI Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58. The company’s 50-day moving average is $5.40 and its two-hundred day moving average is $4.99.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $23.02 million. During the same quarter in the previous year, the company posted ($0.09) earnings per share. The business’s revenue for the quarter was up 88.7% compared to the same quarter last year. On average, research analysts expect that SoundHound AI, Inc. will post -0.37 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, COO Michael Zagorsek sold 42,001 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 $204,964.88. Following the sale, the chief operating officer now owns 1,473,322 shares of the company’s stock, valued at $7,189,811.36. The trade was a 2.77 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Keyvan Mohajer sold 63,544 shares of the stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $4.92, for a total value of $312,636.48. Following the transaction, the chief executive officer now directly owns 2,299,148 shares of the company’s stock, valued at approximately $11,311,808.16. The trade was a 2.69 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 277,275 shares of company stock worth $1,355,644. 12.28% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Janney Montgomery Scott LLC bought a new stake in shares of SoundHound AI during the 1st quarter worth $109,000. Avantax Advisory Services Inc. purchased a new position in SoundHound AI in the 1st quarter worth about $63,000. Vanguard Group Inc. grew its position in SoundHound AI by 16.1% during the first quarter. Vanguard Group Inc. now owns 16,070,453 shares of the company’s stock valued at $94,655,000 after purchasing an additional 2,226,471 shares in the last quarter. Ameritas Investment Partners Inc. lifted its position in SoundHound AI by 17.3% in the 1st quarter. Ameritas Investment Partners Inc. now owns 13,561 shares of the company’s stock worth $80,000 after buying an additional 2,000 shares in the last quarter. Finally, Sheaff Brock Investment Advisors LLC purchased a new position in shares of SoundHound AI during the 1st quarter valued at $84,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.