SoundHound AI (NASDAQ:SOUN) Shares Down 1.8% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 1.8% on Friday . The stock traded as low as $10.52 and last traded at $10.70. Approximately 17,722,981 shares traded hands during mid-day trading, a decline of 59% from the average daily volume of 43,298,633 shares. The stock had previously closed at $10.90.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. HC Wainwright raised their price objective on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research note on Thursday, October 16th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. Oppenheimer began coverage on SoundHound AI in a research note on Thursday, September 11th. They set a “market perform” rating for the company. Finally, DA Davidson reaffirmed a “buy” rating and issued a $17.00 target price on shares of SoundHound AI in a research note on Tuesday, November 18th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, SoundHound AI presently has a consensus rating of “Moderate Buy” and a consensus target price of $17.07.

SoundHound AI Stock Performance

The stock has a market cap of $4.50 billion, a PE ratio of -12.74 and a beta of 2.63. The firm has a 50-day moving average price of $13.38 and a 200-day moving average price of $13.44.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. The business had revenue of $42.05 million during the quarter, compared to analyst estimates of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. SoundHound AI’s revenue was up 67.6% compared to the same quarter last year. During the same period last year, the business earned ($0.04) EPS. As a group, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Keyvan Mohajer sold 118,654 shares of the firm’s stock in a transaction that occurred on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $2,373,080.00. Following the transaction, the chief executive officer owned 2,342,613 shares of the company’s stock, valued at approximately $46,852,260. This trade represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Majid Emami sold 41,167 shares of the stock in a transaction that occurred on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total transaction of $823,340.00. Following the completion of the transaction, the vice president owned 608,186 shares in the company, valued at $12,163,720. The trade was a 6.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 292,064 shares of company stock worth $5,904,921 in the last 90 days. Corporate insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of SOUN. Sound Income Strategies LLC lifted its stake in SoundHound AI by 37.3% in the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after purchasing an additional 575 shares in the last quarter. Investors Research Corp increased its stake in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after acquiring an additional 700 shares during the last quarter. EP Wealth Advisors LLC raised its stake in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after acquiring an additional 706 shares during the period. Newbridge Financial Services Group Inc. raised its position in SoundHound AI by 2.7% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after purchasing an additional 830 shares during the period. Finally, Insigneo Advisory Services LLC raised its position in SoundHound AI by 7.4% in the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock worth $200,000 after purchasing an additional 858 shares during the period. 19.28% of the stock is currently owned by institutional investors.

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.