Perhaps timely catching SoundHound AI Inc. (SOUN) would be a good idea

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.

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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.


Institutional Ownership:

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.

Analysts Ratings:

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.

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