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

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) gapped up before the market opened on Friday . The stock had previously closed at $5.03, but opened at $5.25. SoundHound AI shares last traded at $5.25, with a volume of 4,318,281 shares trading hands.

Analyst Ratings Changes

A number of analysts have weighed in on the company. DA Davidson restated a “buy” rating and set a $9.50 target price on shares of SoundHound AI in a report on Monday, September 30th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $5.00 to $7.00 in a research report on Friday, August 9th. Northland Securities boosted their target price on shares of SoundHound AI from $5.50 to $6.00 and gave the stock a “market perform” rating in a report on Friday, August 9th. HC Wainwright reaffirmed a “buy” rating and issued a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, September 18th. Finally, Wedbush reissued an “outperform” rating and set a $9.00 target price on shares of SoundHound AI in a research report on Thursday, September 26th. One analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and a consensus target price of $7.08.

SoundHound AI Price Performance

The stock has a market cap of $1.84 billion, a price-to-earnings ratio of -13.18 and a beta of 2.73. The company’s fifty day moving average price is $4.95 and its 200-day moving average price is $4.78.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, August 8th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.02). SoundHound AI had a negative net margin of 195.65% and a negative return on equity of 93.28%. The company had revenue of $13.46 million for the quarter, compared to analyst estimates of $13.09 million. During the same quarter in the previous year, the company posted ($0.10) EPS. The company’s revenue for the quarter was up 53.8% compared to the same quarter last year. On average, sell-side analysts forecast that SoundHound AI, Inc. will post -0.36 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider James Ming Hom sold 21,024 shares of the company’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 value of $102,597.12. Following the sale, the insider now owns 865,965 shares in the company, valued at $4,225,909.20. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, insider James Ming Hom sold 21,024 shares of the business’s stock in a transaction on Friday, September 20th. The shares were sold at an average price of $4.88, for a total transaction of $102,597.12. Following the completion of the transaction, the insider now directly owns 865,965 shares in the company, valued at $4,225,909.20. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Lawrence Marcus sold 50,000 shares of the stock in a transaction dated Tuesday, August 20th. The stock was sold at an average price of $5.02, for a total value of $251,000.00. Following the sale, the director now directly owns 74,038 shares in the company, valued at $371,670.76. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 327,275 shares of company stock valued at $1,606,644. 12.28% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in shares of SoundHound AI by 16.1% during the 1st 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. Baupost Group LLC MA purchased a new position in SoundHound AI in the first quarter valued at $6,659,000. Bank of New York Mellon Corp raised its position in shares of SoundHound AI by 92.7% in the second quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company’s stock worth $3,940,000 after acquiring an additional 479,912 shares during the period. Carnegie Investment Counsel purchased a new stake in shares of SoundHound AI during the 3rd quarter worth about $4,193,000. Finally, Janus Henderson Group PLC grew its position in shares of SoundHound AI by 563.0% during the 1st quarter. Janus Henderson Group PLC now owns 482,731 shares of the company’s stock valued at $2,843,000 after acquiring an additional 409,917 shares during the period. 19.28% of the stock is 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.