Investors Buy High Volume of SoundHound AI Call Options (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) was the target of some unusual options trading activity on Wednesday. Stock investors bought 71,999 call options on the stock. This is an increase of approximately 68% compared to the average daily volume of 42,744 call options.

SoundHound AI Stock Performance

Shares of SOUN stock opened at $5.01 on Friday. The firm has a market cap of $1.65 billion, a price-to-earnings ratio of -13.13 and a beta of 2.74. SoundHound AI has a 52 week low of $1.49 and a 52 week high of $10.25. The firm’s 50-day simple moving average is $4.92 and its two-hundred day simple moving average is $4.99.

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

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on SOUN. Wedbush restated an “outperform” rating and issued a $9.00 target price on shares of SoundHound AI in a report on Friday, August 9th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price objective for the stock from $5.00 to $7.00 in a report on Friday, August 9th. HC Wainwright reiterated a “buy” rating and issued a $7.00 target price on shares of SoundHound AI in a report on Wednesday. Finally, Northland Securities raised their price target on shares of SoundHound AI from $5.50 to $6.00 and gave the company a “market perform” rating in a research report on Friday, August 9th. One investment analyst has rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $7.08.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 116,504 shares of the company’s stock in a transaction that occurred on Monday, June 24th. The stock was sold at an average price of $3.95, for a total value of $460,190.80. Following the sale, the chief executive officer now directly owns 953,333 shares in the company, valued at $3,765,665.35. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In other SoundHound AI news, CEO Keyvan Mohajer sold 116,504 shares of the stock in a transaction that occurred on Monday, June 24th. The stock was sold at an average price of $3.95, for a total transaction of $460,190.80. Following the transaction, the chief executive officer now directly owns 953,333 shares in the company, valued at approximately $3,765,665.35. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Lawrence Marcus sold 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 20th. The stock was sold at an average price of $5.02, for a total transaction of $251,000.00. Following the sale, the director now directly owns 74,038 shares of the company’s stock, valued at approximately $371,670.76. The disclosure for this sale can be found here. Insiders sold a total of 374,504 shares of company stock valued at $1,907,191 in the last quarter. Insiders own 21.30% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SOUN. Hexagon Capital Partners LLC purchased a new position in shares of SoundHound AI in the first quarter valued at $29,000. DecisionPoint Financial LLC bought a new position in shares of SoundHound AI in the first quarter valued at approximately $40,000. Kings Path Partners LLC purchased a new position in SoundHound AI during the second quarter valued at approximately $28,000. International Assets Investment Management LLC bought a new stake in SoundHound AI during the 2nd quarter worth approximately $31,000. Finally, Amalgamated Bank increased 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 acquiring an additional 5,099 shares during the period. 19.28% of the stock is currently owned by institutional investors.

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.