Traders Purchase Large Volume of Call Options on SoundHound AI (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) saw unusually large options trading on Tuesday. Stock traders bought 170,683 call options on the company. This is an increase of approximately 58% compared to the typical daily volume of 108,189 call options.

Analyst Ratings Changes

SOUN has been the topic of a number of recent analyst reports. HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $18.00 and set a “buy” rating on the stock in a research note on Monday, May 12th. DA Davidson decreased their price objective on SoundHound AI from $13.00 to $10.00 and set a “buy” rating on the stock in a report on Monday, April 14th. Piper Sandler began coverage on SoundHound AI in a report on Tuesday. They issued an “overweight” rating and a $12.00 target price on the stock. Cantor Fitzgerald raised SoundHound AI to a “hold” rating in a report on Monday, February 24th. Finally, Wedbush reduced their target price on SoundHound AI from $22.00 to $15.00 and set an “outperform” rating on the stock in a report on Friday, May 9th. Four investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $10.50.

SoundHound AI Price Performance

Shares of NASDAQ SOUN opened at $11.10 on Wednesday. The stock has a market capitalization of $4.46 billion, a price-to-earnings ratio of -30.82 and a beta of 2.71. The business has a 50-day moving average of $9.12 and a 200-day moving average of $11.73. 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 has a fifty-two week low of $3.82 and a fifty-two week high of $24.98.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.03. The business had revenue of $29.13 million during the quarter, compared to the consensus estimate of $30.38 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. SoundHound AI’s revenue was up 151.2% on a year-over-year basis. During the same period last year, the business posted ($0.07) EPS. As a group, sell-side analysts predict that SoundHound AI will post -0.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Timothy Stonehocker sold 44,157 shares of SoundHound AI stock in a transaction on Wednesday, May 14th. The stock was sold at an average price of $12.00, for a total transaction of $529,884.00. Following the transaction, the chief technology officer now directly owns 723,009 shares in the company, valued at approximately $8,676,108. This trade represents a 5.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider James Ming Hom sold 51,196 shares of SoundHound AI stock in a transaction on Monday, March 24th. The stock was sold at an average price of $10.25, for a total value of $524,759.00. Following the completion of the transaction, the insider now owns 638,456 shares in the company, valued at $6,544,174. The trade was a 7.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 548,537 shares of company stock valued at $5,567,760 in the last quarter. Insiders own 12.28% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Blue Trust Inc. lifted its holdings in shares of SoundHound AI by 197.6% during the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company’s stock worth $25,000 after purchasing an additional 830 shares during the period. Sound Income Strategies LLC increased its position in shares of SoundHound AI by 2,542.0% during the fourth quarter. Sound Income Strategies LLC now owns 1,321 shares of the company’s stock worth $26,000 after acquiring an additional 1,271 shares in the last quarter. Orion Capital Management LLC bought a new stake in shares of SoundHound AI during the fourth quarter worth about $30,000. AlphaQuest LLC bought a new stake in shares of SoundHound AI during the first quarter worth about $32,000. Finally, Golden State Wealth Management LLC increased its position in shares of SoundHound AI by 100.0% during the first quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company’s stock worth $34,000 after acquiring an additional 2,115 shares in the last quarter. Institutional investors 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.