SoundHound AI (NASDAQ:SOUN) Shares Down 1.8% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price fell 1.8% on Thursday . The company traded as low as $6.37 and last traded at $6.68. Approximately 30,846,757 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 27,360,816 shares. The stock had previously closed at $6.80.

Analysts Set New Price Targets

Several brokerages recently issued reports on SOUN. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, DA Davidson restated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. One equities 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 assigned a Sell rating to the stock. Based on data from MarketBeat.com, SoundHound AI has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Price Performance

The stock has a 50 day simple moving average of $7.68 and a 200-day simple moving average of $8.27. The firm has a market cap of $2.89 billion, a PE ratio of -14.21 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. During the same period last year, the firm posted ($0.06) earnings per share. The company’s revenue was up 51.7% compared to the same quarter last year. As a group, equities analysts predict that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, SVP Majid Emami sold 28,843 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. The trade was a 5.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $140,262.92. Following the sale, the chief technology officer directly owned 502,290 shares in the company, valued at $3,747,083.40. This trade represents a 3.61% decrease in their ownership of the stock. 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 268,022 shares of company stock worth $1,999,444 over the last quarter. Corporate insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after buying an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC raised its holdings in SoundHound AI by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after acquiring an additional 273,097 shares during the last quarter. Morgan Stanley lifted its position in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after acquiring an additional 2,917,280 shares in the last quarter. State Street Corp lifted its position in SoundHound AI by 0.9% in the 4th quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after acquiring an additional 80,908 shares in the last quarter. Finally, UBS Group AG boosted its stake in SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 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.