SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.9% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price fell 1.9% during mid-day trading on Thursday . The company traded as low as $6.52 and last traded at $6.55. Approximately 18,255,768 shares traded hands during mid-day trading, a decline of 33% from the average daily volume of 27,284,254 shares. The stock had previously closed at $6.68.

Wall Street Analysts Forecast Growth

SOUN has been the topic of several recent analyst reports. DA Davidson reiterated a “buy” rating and set a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, five have issued 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.com, SoundHound AI presently has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Trading Down 1.8%

The stock has a market cap of $2.84 billion, a PE ratio of -13.96 and a beta of 2.62. The company’s 50 day moving average is $7.81 and its 200-day moving average is $8.42.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share 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 analysts’ expectations of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The business’s quarterly revenue was up 51.7% on a year-over-year basis. During the same period in the previous year, the company earned ($0.06) earnings per share. As a group, analysts forecast that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the transaction, the chief technology officer owned 502,290 shares of the company’s stock, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the insider owned 743,521 shares of the company’s stock, valued at approximately $5,546,666.66. This trade represents a 3.73% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 268,022 shares of company stock valued at $1,999,444 in the last three months. 8.84% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

Institutional investors have recently added to or reduced their stakes in the stock. Hollencrest Capital Management increased its position in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after purchasing an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC raised its stake in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares in the last quarter. Danske Bank A S bought a new position in SoundHound AI during the 3rd quarter worth approximately $26,000. Finally, SHP Wealth Management acquired a new position in shares of SoundHound AI in the 4th quarter worth approximately $27,000. 19.28% of the stock is owned by institutional investors and hedge funds.

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.