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

SoundHound AI, Inc. (NASDAQ:SOUN) was the target of unusually large options trading on Friday. Stock investors acquired 129,362 call options on the stock. This represents an increase of 84% compared to the typical daily volume of 70,259 call options.

SoundHound AI Price Performance

SOUN opened at $9.31 on Friday. The stock’s 50-day moving average price is $5.84 and its 200 day moving average price is $5.14. SoundHound AI has a 12-month low of $1.62 and a 12-month high of $10.25. The firm has a market cap of $3.44 billion, a price-to-earnings ratio of -25.86 and a beta of 2.71. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.07) by $0.01. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The business had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. During the same quarter last year, the firm posted ($0.09) earnings per share. The business’s revenue for the quarter was up 88.7% compared to the same quarter last year. As a group, sell-side analysts expect that SoundHound AI will post -0.38 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Wedbush restated an “outperform” rating and set a $9.00 price target on shares of SoundHound AI in a report on Thursday, September 26th. LADENBURG THALM/SH SH restated a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a research report on Wednesday, November 13th. Barclays reaffirmed a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. DA Davidson reissued a “buy” rating and set a $9.50 price objective on shares of SoundHound AI in a research report on Monday, September 30th. Finally, HC Wainwright boosted their price objective on shares of SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a report on Thursday, November 14th. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” and a consensus price target of $7.64.

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 20,337 shares of the company’s stock in a transaction dated Friday, September 20th. The shares were sold at an average price of $4.88, for a total value of $99,244.56. Following the completion of the sale, the chief technology officer now owns 1,039,194 shares of the company’s stock, valued at approximately $5,071,266.72. This represents a 1.92 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, COO Michael Zagorsek sold 42,001 shares of the firm’s stock in a transaction dated Friday, September 20th. The stock was sold at an average price of $4.88, for a total transaction of $204,964.88. Following the sale, the chief operating officer now owns 1,473,322 shares of the company’s stock, valued at approximately $7,189,811.36. The trade was a 2.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 337,275 shares of company stock worth $1,811,044 in the last ninety days. Insiders own 12.28% of the company’s stock.

Institutional Trading of SoundHound AI

Large investors have recently modified their holdings of the stock. Franklin Resources Inc. acquired a new position in SoundHound AI during the 3rd quarter worth $177,000. Sanctuary Advisors LLC grew its position in shares of SoundHound AI by 13.8% during the third quarter. Sanctuary Advisors LLC now owns 29,976 shares of the company’s stock worth $140,000 after buying an additional 3,642 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of SoundHound AI by 9.1% during the third quarter. Geode Capital Management LLC now owns 7,193,599 shares of the company’s stock worth $33,529,000 after buying an additional 602,311 shares during the period. MML Investors Services LLC acquired a new stake in SoundHound AI in the third quarter valued at approximately $86,000. Finally, State Street Corp lifted its stake in SoundHound AI by 0.6% in the third quarter. State Street Corp now owns 7,197,414 shares of the company’s stock worth $33,540,000 after acquiring an additional 42,869 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.