SoundHound AI (NASDAQ:SOUN) Shares Down 2.9% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 2.9% during trading on Thursday . The company traded as low as $6.24 and last traded at $6.31. Approximately 33,951,943 shares changed hands during trading, an increase of 24% from the average daily volume of 27,477,693 shares. The stock had previously closed at $6.50.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. DA Davidson reiterated a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Price Performance

The business has a 50-day moving average of $7.37 and a two-hundred day moving average of $8.07. The company has a market cap of $2.71 billion, a P/E ratio of -13.32 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The firm had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The business’s revenue for the quarter was up 51.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.06) earnings per share. Equities analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Activity

In other news, insider James Ming Hom sold 28,843 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the transaction, the insider directly owned 743,521 shares of the company’s stock, valued at approximately $5,546,666.66. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $484,855.24. Following the sale, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 268,022 shares of company stock worth $1,999,444 over the last 90 days. 8.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after buying an additional 1,909,868 shares in the last quarter. Rakuten Securities Inc. increased its holdings in SoundHound AI by 877.9% in the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock valued at $3,326,000 after buying an additional 299,492 shares in the last quarter. UBS Group AG increased its holdings in SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after buying an additional 2,676,707 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of SoundHound AI by 140.5% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after acquiring an additional 155,743 shares during the period. Finally, Geode Capital Management LLC boosted its stake in shares of SoundHound AI by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after acquiring an additional 273,097 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

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.