SoundHound AI (NASDAQ:SOUN) Shares Gap Up After Earnings Beat

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $4.75, but opened at $5.55. SoundHound AI shares last traded at $5.59, with a volume of 36,953,233 shares trading hands.

The company reported ($0.07) EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.02. The business had revenue of $11.59 million during the quarter, compared to analysts’ expectations of $10.10 million. SoundHound AI had a negative net margin of 188.57% and a negative return on equity of 1,955.68%. The company’s quarterly revenue was up 72.9% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.12) earnings per share.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of analyst reports. Northland Securities reissued a “market perform” rating on shares of SoundHound AI in a report on Wednesday, February 28th. Cantor Fitzgerald raised shares of SoundHound AI from an “underweight” rating to a “neutral” rating and set a $4.90 target price for the company in a research note on Thursday, April 11th. LADENBURG THALM/SH SH initiated coverage on shares of SoundHound AI in a research note on Tuesday, January 30th. They set a “buy” rating and a $4.00 target price for the company. HC Wainwright increased their target price on shares of SoundHound AI from $5.00 to $7.00 and gave the stock a “buy” rating in a research note on Monday, March 4th. Finally, DA Davidson increased their target price on shares of SoundHound AI from $7.50 to $9.50 and gave the stock a “buy” rating in a research note on Friday, March 15th. Two 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, SoundHound AI has an average rating of “Moderate Buy” and a consensus target price of $6.88.

Insiders Place Their Bets

In other SoundHound AI news, CEO Keyvan Mohajer sold 107,927 shares of the business’s stock in a transaction on Thursday, February 15th. The shares were sold at an average price of $3.70, for a total transaction of $399,329.90. Following the sale, the chief executive officer now directly owns 1,218,712 shares in the company, valued at approximately $4,509,234.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, CEO Keyvan Mohajer sold 107,927 shares of the business’s stock in a transaction dated Thursday, February 15th. The shares were sold at an average price of $3.70, for a total value of $399,329.90. Following the completion of the transaction, the chief executive officer now owns 1,218,712 shares of the company’s stock, valued at approximately $4,509,234.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Eric R. Ball sold 50,000 shares of SoundHound AI stock in a transaction dated Monday, February 26th. The shares were sold at an average price of $5.00, for a total value of $250,000.00. Following the completion of the sale, the director now owns 530,250 shares of the company’s stock, valued at approximately $2,651,250. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 405,057 shares of company stock worth $2,587,804. Corporate insiders own 21.30% of the company’s stock.

Institutional Trading of SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Vanguard Group Inc. lifted its stake in SoundHound AI by 18.6% during the third quarter. Vanguard Group Inc. now owns 13,166,989 shares of the company’s stock worth $26,466,000 after purchasing an additional 2,064,340 shares during the last quarter. Intrinsic Edge Capital Management LLC lifted its stake in SoundHound AI by 47.7% in the fourth quarter. Intrinsic Edge Capital Management LLC now owns 4,848,211 shares of the company’s stock valued at $10,278,000 after buying an additional 1,566,238 shares during the last quarter. Raymond James & Associates increased its holdings in shares of SoundHound AI by 221.1% during the third quarter. Raymond James & Associates now owns 982,948 shares of the company’s stock valued at $1,976,000 after purchasing an additional 676,799 shares during the period. Quadrature Capital Ltd acquired a new position in shares of SoundHound AI during the third quarter valued at $457,000. Finally, PFG Investments LLC acquired a new position in shares of SoundHound AI during the first quarter valued at $1,335,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Price Performance

The stock has a 50 day moving average of $5.41 and a two-hundred day moving average of $3.39. The stock has a market cap of $1.70 billion, a PE ratio of -14.31 and a beta of 2.87. The company has a debt-to-equity ratio of 6.03, a quick ratio of 4.69 and a current ratio of 4.69.

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.