SoundHound AI (NASDAQ:SOUN) Trading Down 2.7% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 2.7% on Thursday . The stock traded as low as $6.88 and last traded at $6.97. 21,856,891 shares were traded during trading, a decline of 24% from the average daily volume of 28,844,324 shares. The stock had previously closed at $7.16.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Piper Sandler reduced their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, August 6th. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $13.60.

SoundHound AI Stock Performance

The company has a 50-day moving average of $6.71 and a 200-day moving average of $7.41. The stock has a market cap of $3.25 billion, a price-to-earnings ratio of -19.26 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.11. The company had revenue of $61.90 million for the quarter, compared to analysts’ expectations of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. SoundHound AI’s revenue was up 45.0% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.19) EPS. As a group, equities research analysts forecast that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insider Transactions at SoundHound AI

In other news, SVP Majid Emami 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 value of $215,168.78. Following the sale, the senior vice president directly owned 472,983 shares in the company, valued at $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. 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 268,022 shares of company stock worth $1,999,444 in the last quarter. Insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in SOUN. Concurrent Investment Advisors LLC grew its holdings in SoundHound AI by 163.5% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 87,766 shares of the company’s stock valued at $568,000 after buying an additional 54,458 shares during the period. AXQ Capital LP raised its stake in SoundHound AI by 395.6% during the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after purchasing an additional 203,345 shares during the period. Nykredit A S acquired a new position in SoundHound AI in the second quarter valued at $165,000. Handelsbanken Fonder AB lifted its stake in shares of SoundHound AI by 17.4% in the 2nd quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company’s stock valued at $802,000 after purchasing an additional 18,400 shares in the last quarter. Finally, Focus Financial Network Inc. lifted its position in SoundHound AI by 21.4% during the second quarter. Focus Financial Network Inc. now owns 48,229 shares of the company’s stock valued at $312,000 after buying an additional 8,516 shares in the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

SoundHound AI Company Profile

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.