SoundHound AI (NASDAQ:SOUN) Trading Down 8% After Insider Selling

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) fell 8% during trading on Thursday after an insider sold shares in the company. The stock traded as low as $15.82 and last traded at $16.35. 71,203,098 shares traded hands during mid-day trading, an increase of 56% from the average session volume of 45,725,801 shares. The stock had previously closed at $17.78.

Specifically, COO Michael Zagorsek sold 69,837 shares of the business’s stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $1,117,392.00. Following the transaction, the chief operating officer directly owned 1,860,790 shares of the company’s stock, valued at approximately $29,772,640. The trade was a 3.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Timothy Stonehocker sold 2,247 shares of the company’s stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $17.90, for a total transaction of $40,221.30. Following the completion of the transaction, the chief technology officer owned 677,049 shares in the company, valued at approximately $12,119,177.10. This represents a 0.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, CTO Timothy Stonehocker sold 37,570 shares of the firm’s stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $16.00, for a total transaction of $601,120.00. Following the completion of the sale, the chief technology officer owned 679,296 shares in the company, valued at approximately $10,868,736. This trade represents a 5.24% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link.

Wall Street Analysts Forecast Growth

SOUN has been the topic of several research analyst reports. Wall Street Zen cut shares of SoundHound AI from a “hold” rating to a “sell” rating in a report on Saturday, August 9th. Northland Securities upgraded SoundHound AI from a “market perform” rating to an “outperform” rating and set a $14.50 target price on the stock in a research note on Friday, August 8th. Wedbush restated an “outperform” rating and issued a $16.00 price target on shares of SoundHound AI in a research note on Thursday, September 11th. LADENBURG THALM/SH SH upgraded SoundHound AI from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $9.00 to $16.00 in a research report on Monday, August 11th. Finally, Oppenheimer initiated coverage on SoundHound AI in a report on Thursday, September 11th. They set a “market perform” rating for the company. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $14.36.

SoundHound AI Price Performance

The stock has a 50-day moving average of $13.48 and a 200 day moving average of $10.99. The company has a market cap of $6.67 billion, a P/E ratio of -25.95 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The firm had revenue of $42.68 million for the quarter, compared to analyst estimates of $32.88 million. During the same quarter in the prior year, the business posted ($0.11) EPS. The business’s revenue was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. Sell-side analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently made changes to their positions in the stock. Osaic Holdings Inc. boosted its position in SoundHound AI by 14.0% in the second quarter. Osaic Holdings Inc. now owns 498,691 shares of the company’s stock valued at $5,351,000 after buying an additional 61,212 shares in the last quarter. B. Riley Wealth Advisors Inc. bought a new position in shares of SoundHound AI in the 2nd quarter valued at $157,000. Newbridge Financial Services Group Inc. boosted its holdings in shares of SoundHound AI by 6.3% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 31,050 shares of the company’s stock valued at $333,000 after acquiring an additional 1,850 shares in the last quarter. Marex Group plc bought a new stake in SoundHound AI during the 2nd quarter worth $3,728,000. Finally, Tyler Stone Wealth Management increased its holdings in SoundHound AI by 20.7% in the 2nd quarter. Tyler Stone Wealth Management now owns 32,190 shares of the company’s stock worth $345,000 after purchasing an additional 5,510 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

About SoundHound AI

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.