SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.9% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 3.9% during mid-day trading on Wednesday . The company traded as low as $10.57 and last traded at $10.68. Approximately 15,161,123 shares were traded during trading, a decline of 60% from the average daily volume of 38,101,931 shares. The stock had previously closed at $11.12.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on SOUN shares. Wedbush lowered their price target on SoundHound AI from $22.00 to $15.00 and set an “outperform” rating on the stock in a report on Friday, May 9th. Cantor Fitzgerald raised SoundHound AI to a “hold” rating in a research note on Monday, February 24th. HC Wainwright reduced their price target on SoundHound AI from $26.00 to $18.00 and set a “buy” rating on the stock in a report on Monday, May 12th. DA Davidson reduced their price target on SoundHound AI from $13.00 to $10.00 and set a “buy” rating on the stock in a report on Monday, April 14th. Finally, Piper Sandler initiated coverage on SoundHound AI in a report on Tuesday. They set an “overweight” rating and a $12.00 price objective on the stock. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $10.50.

SoundHound AI Trading Down 2.4%

The company has a market cap of $4.13 billion, a price-to-earnings ratio of -28.57 and a beta of 2.71. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The business has a fifty day simple moving average of $9.15 and a 200 day simple moving average of $11.75.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.03. The firm had revenue of $29.13 million during the quarter, compared to analysts’ expectations of $30.38 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. SoundHound AI’s quarterly revenue was up 151.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.07) EPS. On average, equities analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, Director Diana Sroka sold 3,402 shares of SoundHound AI stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $10.08, for a total value of $34,292.16. Following the transaction, the director now directly owns 138,850 shares of the company’s stock, valued at $1,399,608. The trade was a 2.39% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CTO Timothy Stonehocker sold 44,157 shares of SoundHound AI stock in a transaction that occurred on Wednesday, May 14th. The stock was sold at an average price of $12.00, for a total value of $529,884.00. Following the completion of the transaction, the chief technology officer now directly owns 723,009 shares in the company, valued at approximately $8,676,108. This represents a 5.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 548,537 shares of company stock valued at $5,567,760. 12.28% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently bought and sold shares of SOUN. Mitchell Capital Management Co. bought a new stake in shares of SoundHound AI during the fourth quarter worth $2,329,000. UNICOM Systems Inc. bought a new stake in shares of SoundHound AI in the fourth quarter worth about $4,662,000. Deutsche Bank AG lifted its holdings in shares of SoundHound AI by 64.2% during the 4th quarter. Deutsche Bank AG now owns 264,559 shares of the company’s stock valued at $5,249,000 after purchasing an additional 103,450 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in SoundHound AI by 5.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,725,693 shares of the company’s stock valued at $54,078,000 after buying an additional 143,487 shares in the last quarter. Finally, Rockefeller Capital Management L.P. bought a new position in SoundHound AI in the fourth quarter valued at approximately $41,595,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.