SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.4% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) shares were down 1.4% during mid-day trading on Wednesday . The stock traded as low as $6.44 and last traded at $6.48. 24,945,938 shares changed hands during trading, a decline of 13% from the average daily volume of 28,551,607 shares. The stock had previously closed at $6.57.

Wall Street Analysts Forecast Growth

A number of analysts have commented on SOUN shares. Wall Street Zen downgraded SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 5th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. DA Davidson reduced their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Finally, Piper Sandler decreased 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 note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $13.00.

SoundHound AI Price Performance

The business’s 50 day moving average price is $6.75 and its 200-day moving average price is $7.30. The company has a market cap of $2.79 billion, a P/E ratio of -16.51 and a beta of 2.66.

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

Insider Activity at SoundHound AI

In other news, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the sale, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 firm’s 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 completion of the sale, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at approximately $12,454,447.62. This trade represents a 3.75% 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. In the last ninety days, insiders have sold 269,365 shares of company stock valued at $2,009,047. 8.84% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

Several hedge funds have recently modified their holdings of the stock. NewEdge Advisors LLC raised its position in SoundHound AI by 38.1% in the 2nd quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock worth $855,000 after purchasing an additional 36,415 shares during the last quarter. IFP Advisors Inc lifted its stake in shares of SoundHound AI by 10.7% during the second quarter. IFP Advisors Inc now owns 32,748 shares of the company’s stock valued at $212,000 after acquiring an additional 3,163 shares during the period. Allworth Financial LP lifted its stake in shares of SoundHound AI by 12.7% during the second quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock valued at $146,000 after acquiring an additional 2,537 shares during the period. Waverly Advisors LLC boosted its holdings in SoundHound AI by 6.9% in the second quarter. Waverly Advisors LLC now owns 64,132 shares of the company’s stock valued at $415,000 after acquiring an additional 4,138 shares during the last quarter. Finally, Nykredit A S acquired a new stake in SoundHound AI in the second quarter worth about $165,000. 19.28% of the stock is owned by 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.