SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.3% – Should You Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 2.3% during mid-day trading on Monday . The stock traded as low as $6.39 and last traded at $6.49. Approximately 29,333,806 shares traded hands during mid-day trading, an increase of 7% from the average daily volume of 27,352,227 shares. The stock had previously closed at $6.64.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on SOUN shares. 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 SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, DA Davidson reaffirmed 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 given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Up 3.1%

The firm has a market cap of $2.90 billion, a PE ratio of -14.23 and a beta of 2.62. The firm’s fifty day simple moving average is $7.55 and its two-hundred day simple moving average is $8.15.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (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 analysts’ expectations 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 revenue for the quarter was up 51.7% on a year-over-year basis. During the same period last year, the company earned ($0.06) earnings per share. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other SoundHound AI news, SVP Majid Emami sold 28,843 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the sale, the senior vice president owned 472,983 shares in the company, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 firm’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 $140,262.92. Following the sale, the chief technology officer directly owned 502,290 shares in the company, valued at approximately $3,747,083.40. This 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 a total of 268,022 shares of company stock worth $1,999,444 in the last three months. 8.84% of the stock is owned by company insiders.

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently added to or reduced their stakes in SOUN. Danske Bank A S bought a new position in SoundHound AI in the 3rd quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. raised its position in shares of SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC lifted its holdings in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after buying an additional 1,544 shares in the last quarter. SHP Wealth Management purchased a new position in shares of SoundHound AI in the fourth quarter worth $27,000. Finally, Parallel Advisors LLC boosted its position in shares of SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after acquiring an additional 960 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.