SoundHound AI (NASDAQ:SOUN) Shares Gap Up – Time to Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $6.98, but opened at $7.35. SoundHound AI shares last traded at $7.36, with a volume of 18,635,574 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Wedbush restated an “outperform” rating and issued a $9.00 target price on shares of SoundHound AI in a research note on Thursday, September 26th. LADENBURG THALM/SH SH reiterated a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a research report on Wednesday, November 13th. Barclays reaffirmed a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price target for the company from $5.00 to $7.00 in a research report on Friday, August 9th. Finally, HC Wainwright increased their price objective on shares of SoundHound AI from $7.00 to $8.00 and gave the stock a “buy” rating in a research report on Thursday, November 14th. Three analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $7.64.

SoundHound AI Trading Up 10.7 %

The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.58 and a current ratio of 2.58. The stock has a market cap of $2.77 billion, a price-to-earnings ratio of -21.11 and a beta of 2.71. The business has a fifty day simple moving average of $5.44 and a 200 day simple moving average of $5.01.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.07) by $0.01. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. During the same quarter in the prior year, the business posted ($0.09) earnings per share. SoundHound AI’s revenue for the quarter was up 88.7% compared to the same quarter last year. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.37 EPS for the current year.

Insiders Place Their Bets

In related news, COO Michael Zagorsek sold 42,001 shares of the stock in a transaction that occurred on Friday, September 20th. The stock was sold at an average price of $4.88, for a total value of $204,964.88. Following the completion of the transaction, the chief operating officer now directly owns 1,473,322 shares of the company’s stock, valued at $7,189,811.36. This represents a 2.77 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Keyvan Mohajer sold 63,544 shares of the stock in a transaction on Monday, September 23rd. The stock was sold at an average price of $4.92, for a total value of $312,636.48. Following the completion of 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 position. The disclosure for this sale can be found here. Insiders have sold a total of 277,275 shares of company stock valued at $1,355,644 in the last quarter. Insiders own 12.28% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Kings Path Partners LLC acquired a new position in SoundHound AI during the second quarter worth about $28,000. International Assets Investment Management LLC acquired a new stake in shares of SoundHound AI during the second quarter worth $31,000. NBC Securities Inc. boosted its position in shares of SoundHound AI by 97.8% in the 3rd quarter. NBC Securities Inc. now owns 7,720 shares of the company’s stock valued at $35,000 after purchasing an additional 3,818 shares during the period. Amalgamated Bank raised its holdings in SoundHound AI by 108.0% during the 2nd quarter. Amalgamated Bank now owns 9,819 shares of the company’s stock worth $39,000 after buying an additional 5,099 shares during the period. Finally, Signaturefd LLC boosted its holdings in shares of SoundHound AI by 27.3% in the second quarter. Signaturefd LLC now owns 10,255 shares of the company’s stock worth $41,000 after buying an additional 2,200 shares during the period. 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.