SoundHound AI (NASDAQ:SOUN) Shares Down 7% on Insider Selling

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded down 7% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $12.70 and last traded at $13.23. Approximately 35,650,461 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 37,732,242 shares. The stock had previously closed at $14.23.

Specifically, CEO Keyvan Mohajer sold 368,041 shares of the company’s stock in a transaction on Friday, December 6th. The shares were sold at an average price of $15.00, for a total value of $5,520,615.00. Following the sale, the chief executive officer now directly owns 2,299,148 shares of the company’s stock, valued at $34,487,220. This represents a 13.80 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Keyvan Mohajer sold 465,394 shares of the firm’s stock in a transaction on Monday, December 9th. The stock was sold at an average price of $15.04, for a total transaction of $6,999,525.76. Following the transaction, the chief executive officer now directly owns 2,299,148 shares of the company’s stock, valued at approximately $34,579,185.92. This trade represents a 16.83 % decrease in their position. The disclosure for this sale can be found here. In related news, VP Majid Emami sold 368,662 shares of the business’s stock in a transaction on Friday, December 6th. The shares were sold at an average price of $15.00, for a total transaction of $5,529,930.00. Following the completion of the transaction, the vice president now directly owns 735,685 shares in the company, valued at $11,035,275. The trade was a 33.38 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink.

Analysts Set New Price Targets

A number of research firms have weighed in on SOUN. HC Wainwright lifted their price objective on SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a research note on Thursday, November 14th. Wedbush reaffirmed an “outperform” rating and set a $9.00 target price on shares of SoundHound AI in a report on Thursday, September 26th. Barclays reissued a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a report on Wednesday, November 13th. DA Davidson reaffirmed a “buy” rating and set a $9.50 price objective on shares of SoundHound AI in a research note on Monday, September 30th. Finally, LADENBURG THALM/SH SH reiterated a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a research note on Wednesday, November 13th. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, SoundHound AI currently has a consensus rating of “Moderate Buy” and a consensus target price of $7.64.

SoundHound AI Price Performance

The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $5.01 billion, a PE ratio of -37.64 and a beta of 3.03. The stock has a 50-day moving average price of $7.05 and a 200 day moving average price of $5.54.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.07) by $0.01. The company had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm’s revenue was up 88.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.09) EPS. Equities analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of SOUN. Kings Path Partners LLC purchased a new stake in SoundHound AI during the 2nd quarter worth approximately $28,000. International Assets Investment Management LLC purchased a new stake in shares of SoundHound AI during the second quarter worth approximately $31,000. NBC Securities Inc. raised its stake in SoundHound AI by 97.8% in the 3rd quarter. NBC Securities Inc. now owns 7,720 shares of the company’s stock valued at $35,000 after purchasing an additional 3,818 shares during the last quarter. Amalgamated Bank lifted its holdings in SoundHound AI by 108.0% in the 2nd quarter. Amalgamated Bank now owns 9,819 shares of the company’s stock valued at $39,000 after purchasing an additional 5,099 shares in the last quarter. Finally, Signaturefd LLC boosted its stake in SoundHound AI by 27.3% during the 2nd quarter. Signaturefd LLC now owns 10,255 shares of the company’s stock worth $41,000 after purchasing an additional 2,200 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.