SoundHound AI (NASDAQ:SOUN) Trading Down 1% – Should You Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 1% on Wednesday . The company traded as low as $6.72 and last traded at $6.78. Approximately 23,744,303 shares traded hands during trading, a decline of 17% from the average session volume of 28,584,553 shares. The stock had previously closed at $6.85.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. DA Davidson reduced their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Piper Sandler dropped their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, Wall Street Zen upgraded shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, SoundHound AI currently has an average rating of “Moderate Buy” and an average target price of $13.60.

SoundHound AI Price Performance

The stock has a market cap of $2.99 billion, a P/E ratio of -17.74 and a beta of 2.66. The stock’s 50-day moving average is $6.74 and its two-hundred day moving average is $7.34.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.11. The business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business’s revenue was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.19) EPS. On average, analysts anticipate that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, CTO Timothy Stonehocker sold 18,802 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the sale, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. This trade represents a 3.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 28,843 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the insider directly owned 743,521 shares in the company, valued at $5,546,666.66. This trade represents a 3.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 269,365 shares of company stock worth $2,009,047. 8.84% of the stock is currently owned by corporate insiders.

Institutional Trading of SoundHound AI

Hedge funds and other institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System lifted its stake in shares of SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after purchasing an additional 87,998 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in shares of SoundHound AI by 140.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock valued at $2,826,000 after buying an additional 155,743 shares in the last quarter. Geode Capital Management LLC grew its position in shares of SoundHound AI by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after buying an additional 273,097 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of SoundHound AI by 2.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,364,998 shares of the company’s stock worth $33,549,000 after acquiring an additional 82,428 shares in the last quarter. Finally, Havemeyer Place LP acquired a new stake in SoundHound AI in the fourth quarter valued at approximately $956,000. 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.