SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.1% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 2.1% on Thursday . The company traded as low as $6.08 and last traded at $6.21. 30,133,856 shares traded hands during trading, an increase of 10% from the average session volume of 27,405,748 shares. The stock had previously closed at $6.34.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of analyst reports. DA Davidson reissued a “buy” rating and set a $14.00 target price on shares of SoundHound AI in a research note on Wednesday, April 22nd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Piper Sandler restated a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Finally, HC Wainwright decreased their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, SoundHound AI presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Price Performance

The firm has a fifty day simple moving average of $7.95 and a 200 day simple moving average of $8.63. The company has a market cap of $2.69 billion, a price-to-earnings ratio of -13.21 and a beta of 2.56.

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

Insider Transactions at SoundHound AI

In other news, COO Michael Zagorsek sold 64,994 shares of the business’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 sale, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at $12,454,447.62. The trade was a 3.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, 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, CEO Keyvan Mohajer sold 126,540 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the transaction, the chief executive officer directly owned 1,947,237 shares of the company’s stock, valued at $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. In the last quarter, insiders sold 268,022 shares of company stock valued at $1,999,444. Insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in shares of SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after purchasing an additional 1,909,868 shares during the last quarter. Rakuten Securities Inc. grew its holdings in SoundHound AI by 877.9% during the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock worth $3,326,000 after acquiring an additional 299,492 shares during the last quarter. Clear Street Group Inc. acquired a new position in SoundHound AI in the 3rd quarter valued at approximately $12,944,000. UBS Group AG raised its stake in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after acquiring an additional 2,676,707 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its holdings in SoundHound AI by 140.5% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after buying an additional 155,743 shares during the period. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.