SoundHound AI (NASDAQ:SOUN) Stock Price Down 8.4% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) was down 8.4% on Wednesday . The stock traded as low as $8.07 and last traded at $8.08. Approximately 28,308,594 shares changed hands during mid-day trading, an increase of 2% from the average daily volume of 27,623,863 shares. The stock had previously closed at $8.82.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on SOUN. Piper Sandler reissued a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Finally, DA Davidson reissued a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. One research 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 issued a Sell rating to the stock. According to data from MarketBeat.com, SoundHound AI currently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 2.7%

The firm’s 50 day moving average price is $7.82 and its two-hundred day moving average price is $9.10. The firm has a market capitalization of $3.37 billion, a PE ratio of -16.60 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) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The firm had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The business’s quarterly revenue was up 51.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.06) EPS. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.43 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, insider James Ming Hom sold 31,019 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the transaction, the insider owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Majid Emami sold 31,019 shares of SoundHound AI stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the sale, the senior vice president owned 501,826 shares in the company, valued at $3,407,398.54. This represents a 5.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 307,973 shares of company stock valued at $2,091,110 in the last three months. 8.84% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. NewEdge Advisors LLC grew its holdings in SoundHound AI by 62.1% during the 1st quarter. NewEdge Advisors LLC now owns 95,657 shares of the company’s stock worth $657,000 after acquiring an additional 36,644 shares in the last quarter. Verus Capital Partners LLC bought a new stake in SoundHound AI in the first quarter valued at $71,000. Amundi boosted its holdings in shares of SoundHound AI by 112.4% during the first quarter. Amundi now owns 24,046 shares of the company’s stock valued at $165,000 after acquiring an additional 12,725 shares during the period. California State Teachers Retirement System grew its position in shares of SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after acquiring an additional 87,998 shares during the last quarter. Finally, Empowered Funds LLC lifted its position in SoundHound AI by 19.6% in the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after purchasing an additional 2,277 shares during the last quarter. Institutional investors 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.