SoundHound AI (NASDAQ:SOUN) Shares Down 3.5% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) was down 3.5% during mid-day trading on Friday. The stock traded as low as $5.78 and last traded at $5.84. 23,315,863 shares traded hands during mid-day trading, a decline of 15% from the average daily volume of 27,570,354 shares. The stock had previously closed at $6.05.

Analyst Ratings Changes

Several equities analysts recently commented on SOUN shares. 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. Wall Street Zen cut SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. Finally, Piper Sandler decreased their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, SoundHound AI presently has an average rating of “Moderate Buy” and an average target price of $12.75.

SoundHound AI Price Performance

The stock has a market cap of $2.59 billion, a PE ratio of -15.37 and a beta of 2.73. The business has a 50 day moving average price of $6.60 and a two-hundred day moving average price of $7.08.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same period in the previous year, the firm earned ($0.19) earnings per share. The firm’s revenue for the quarter was up 45.0% on a year-over-year basis. On average, sell-side analysts forecast that SoundHound AI, Inc. will post -0.32 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Keyvan Mohajer sold 137,290 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $869,045.70. Following the sale, the chief executive officer directly owned 3,684,947 shares of the company’s stock, valued at $23,325,714.51. This trade represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the business’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the transaction, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. This represents a 4.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 288,758 shares of company stock worth $1,828,598 over the last ninety days. 8.84% of the stock is owned by insiders.

Institutional Trading of SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. SHP Wealth Management purchased a new stake in shares of SoundHound AI in the 4th quarter worth about $27,000. Hollencrest Capital Management raised its stake in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after buying an additional 2,400 shares in the last quarter. Vermillion Wealth Management Inc. lifted its holdings in SoundHound AI by 5,164.8% in the fourth quarter. Vermillion Wealth Management Inc. now owns 4,791 shares of the company’s stock worth $48,000 after buying an additional 4,700 shares during the period. Clarus Group Inc. purchased a new stake in SoundHound AI in the first quarter worth about $69,000. Finally, 180 Wealth Advisors LLC bought a new stake in SoundHound AI during the 1st quarter valued at approximately $69,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.