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

SoundHound AI, Inc. (NASDAQ:SOUN) was the target of some unusual options trading activity on Wednesday. Traders purchased 214,813 call options on the company. This represents an increase of 33% compared to the average volume of 162,111 call options.

SoundHound AI Stock Up 3.7%

Shares of SOUN stock opened at $18.88 on Thursday. SoundHound AI has a 12-month low of $4.56 and a 12-month high of $24.98. The company has a market capitalization of $7.70 billion, a P/E ratio of -29.97 and a beta of 2.60. The firm has a 50-day moving average price of $14.49 and a 200 day moving average price of $11.47.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The firm had revenue of $42.68 million for the quarter, compared to the consensus estimate of $32.88 million. During the same period in the prior year, the business earned ($0.11) earnings per share. The company’s revenue for the quarter was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. As a group, research analysts expect that SoundHound AI will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In other SoundHound AI news, CEO Keyvan Mohajer sold 138,523 shares of the stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $2,216,368.00. Following the completion of the sale, the chief executive officer directly owned 2,461,267 shares of the company’s stock, valued at $39,380,272. This represents a 5.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Majid Emami sold 42,119 shares of the stock in a transaction on Monday, September 22nd. The shares were sold at an average price of $16.00, for a total transaction of $673,904.00. Following the completion of the sale, the vice president directly owned 685,538 shares of the company’s stock, valued at approximately $10,968,608. This trade represents a 5.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 495,196 shares of company stock worth $8,068,135 in the last ninety days. 9.17% of the stock is owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Investors Research Corp increased its position in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after acquiring an additional 700 shares in the last quarter. EP Wealth Advisors LLC increased its position in SoundHound AI by 5.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after acquiring an additional 706 shares in the last quarter. Janney Montgomery Scott LLC increased its position in SoundHound AI by 4.0% in the 2nd quarter. Janney Montgomery Scott LLC now owns 23,073 shares of the company’s stock valued at $248,000 after acquiring an additional 880 shares in the last quarter. Apexium Financial LP increased its position in SoundHound AI by 2.8% in the 2nd quarter. Apexium Financial LP now owns 36,698 shares of the company’s stock valued at $394,000 after acquiring an additional 1,000 shares in the last quarter. Finally, Belpointe Asset Management LLC increased its position in SoundHound AI by 9.6% in the 2nd quarter. Belpointe Asset Management LLC now owns 11,430 shares of the company’s stock valued at $123,000 after acquiring an additional 1,000 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

Analysts Set New Price Targets

SOUN has been the subject of a number of research reports. DA Davidson increased their price target on shares of SoundHound AI from $15.00 to $17.00 and gave the company a “buy” rating in a report on Wednesday, September 10th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Saturday, September 27th. HC Wainwright reaffirmed a “buy” rating and set a $18.00 price objective on shares of SoundHound AI in a report on Wednesday, September 17th. Northland Securities raised shares of SoundHound AI from a “market perform” rating to an “outperform” rating and set a $14.50 price objective for the company in a report on Friday, August 8th. Finally, LADENBURG THALM/SH SH raised shares of SoundHound AI from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $9.00 to $16.00 in a report on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $14.36.

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.