SoundHound AI (NASDAQ:SOUN) Trading Down 1.5% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 1.5% on Wednesday . The company traded as low as $10.96 and last traded at $11.06. 22,365,762 shares traded hands during mid-day trading, a decline of 14% from the average session volume of 25,911,277 shares. The stock had previously closed at $11.23.

Analyst Ratings Changes

A number of analysts recently commented on the company. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Piper Sandler decreased their price target on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $13.00 to $15.00 in a report on Friday, December 12th. HC Wainwright upped their price objective on shares of SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research note on Thursday, October 16th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research report on Tuesday, October 14th. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Trading Up 6.6%

The company has a market cap of $4.94 billion, a price-to-earnings ratio of -13.99 and a beta of 2.65. The stock’s 50 day moving average price is $11.92 and its 200 day moving average price is $13.50.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. The firm had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. SoundHound AI’s revenue was up 67.6% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.04) earnings per share. On average, equities analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, CTO Timothy Stonehocker sold 31,329 shares of the stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $353,391.12. Following the transaction, the chief technology officer directly owned 575,976 shares of the company’s stock, valued at approximately $6,497,009.28. This trade represents a 5.16% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Michael Zagorsek sold 73,406 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $828,019.68. Following the completion of the transaction, the chief operating officer owned 1,787,459 shares in the company, valued at $20,162,537.52. The trade was a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 492,965 shares of company stock worth $6,140,981. 9.17% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

A number of institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the period. Danske Bank A S purchased a new stake in SoundHound AI during the third quarter worth approximately $26,000. Advisors Asset Management Inc. increased its position in shares of SoundHound AI by 68.4% in the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock worth $27,000 after acquiring an additional 1,023 shares in the last quarter. Investors Research Corp raised its stake in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after acquiring an additional 700 shares during the period. Finally, Financial Consulate Inc. acquired a new position in shares of SoundHound AI during the 3rd quarter valued at $32,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.