SoundHound AI Inc. (NASDAQ: SOUN) stock jumped 3.52% on Monday to $1.47 against a previous-day closing price of $1.42. With 1.59 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.94 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $1.5791 whereas the lowest price it dropped to was $1.4100. The 52-week range on SOUN shows that it touched its highest point at $18.14 and its lowest point at $0.93 during that stretch. It currently has a 1-year price target of $3.70.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SOUN was up-trending over the past week, with a rise of 21.49%, but this was up by 33.64% over a month. Three-month performance dropped to -49.66% while six-month performance fell -60.59%. A look at the trailing 12-month EPS for SOUN yields -0.58 with Next year EPS estimates of -0.45. For the next quarter, that number is -0.17. This implies an EPS growth rate of -2.50% for this year and 67.60% for next year.
Float and Shares Shorts:
At present, 197.01 million SOUN shares are outstanding with a float of 119.85 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.26 million, which was 0.64% higher than short shares on Sep 14, 2022. In addition to Dr. Keyvan Mohajer as the firm’s CEO, Pres & Director, Mr. Nitesh Sharan serves as its Chief Financial Officer.
Through their ownership of 10.38% of SOUN’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 6.06% of SOUN, in contrast to 4.05% held by mutual funds. Shares owned by individuals account for 2.61%. As the largest shareholder in SOUN with 2.03% of the stake, Anchorage Capital Group LLC holds 3,197,767 shares worth 3,197,767. A second-largest stockholder of SOUN, BlackRock Fund Advisors, holds 1,752,417 shares, controlling over 1.11% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SOUN, holding 1,555,970 shares or 0.99% stake. With a 2.96% stake in SOUN, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,658,401 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.00% of SOUN stock, is the second-largest Mutual Fund holder. It holds 1,572,114 shares valued at 2.78 million. Global X Robotics & Artificial In holds 0.80% of the stake in SOUN, owning 1,262,125 shares worth 2.23 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SOUN since 3 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SOUN analysts setting a high price target of $5.00 and a low target of $1.60, the average target price over the next 12 months is $3.70. Based on these targets, SOUN could surge 240.14% to reach the target high and rise by 8.84% to reach the target low. Reaching the average price target will result in a growth of 151.7% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. Analysts have provided yearly estimates in a range of -$0.82 being high and -$2.50 being low. For SOUN, this leads to a yearly average estimate of -$1.39. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. SoundHound AI Inc. surprised analysts by $0.01 when it reported -$0.15 EPS against a consensus estimate of -$0.17. The surprise factor in the prior quarter was $0.18. Based on analyst estimates, the high estimate for the next quarter is -$0.16 and the low estimate is -$0.18. The average estimate for the next quarter is thus -$0.17.
Summary of Insider Activity:
Insiders traded SOUN stock several times over the past three months with 0 Buys and 3 Sells. In these transactions, 0 shares were bought while 135,352 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 4,778,428 while 157,892 shares were sold.