SoundHound AI (NASDAQ:SOUN) Shares Down 3.1% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded down 3.1% during trading on Thursday . The company traded as low as $6.26 and last traded at $6.28. 19,194,326 shares were traded during mid-day trading, a decline of 33% from the average session volume of 28,498,586 shares. The stock had previously closed at $6.48.

Analysts Set New Price Targets

Several research firms have issued reports on SOUN. DA Davidson reduced their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Piper Sandler reduced their target price 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. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 5th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and a consensus price target of $13.60.

SoundHound AI Price Performance

The company has a market cap of $2.79 billion, a P/E ratio of -16.53 and a beta of 2.66. The company’s 50-day moving average price is $6.75 and its 200-day moving average price is $7.31.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results 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. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. During the same period last year, the business posted ($0.19) EPS. SoundHound AI’s revenue was up 45.0% on a year-over-year basis. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insider Activity at SoundHound AI

In related news, insider James Hom sold 28,843 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the insider owned 743,521 shares of the company’s stock, valued at approximately $5,546,666.66. The trade was a 3.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible 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 position. 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 a total of 269,365 shares of company stock worth $2,009,047 in the last quarter. 8.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently made changes to their positions in the company. Morgan Stanley boosted its holdings in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares during the period. California State Teachers Retirement System raised its position in shares of SoundHound AI by 558.0% in the second quarter. California State Teachers Retirement System now owns 2,895,228 shares of the company’s stock valued at $18,732,000 after buying an additional 2,455,205 shares in the last quarter. Voloridge Investment Management LLC boosted its stake in shares of SoundHound AI by 2,259.7% in the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after buying an additional 2,106,298 shares during the period. Jump Financial LLC bought a new stake in shares of SoundHound AI in the third quarter valued at approximately $21,679,000. Finally, HRT Financial LP acquired a new stake in SoundHound AI during the second quarter worth approximately $11,914,000. 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.