SoundHound AI (NASDAQ:SOUN) Stock Price Down 8.7% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 8.7% during trading on Wednesday . The company traded as low as $5.65 and last traded at $5.70. Approximately 46,231,335 shares traded hands during trading, an increase of 63% from the average daily volume of 28,358,516 shares. The stock had previously closed at $6.24.

Wall Street Analyst Weigh In

Several research analysts have commented on SOUN shares. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. DA Davidson reaffirmed a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. One 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 company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Performance

The firm has a 50-day moving average of $6.99 and a 200-day moving average of $7.77. The firm has a market capitalization of $2.68 billion, a P/E ratio of -13.20 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates 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 analysts’ expectations of $42.56 million. During the same period last year, the firm earned ($0.06) earnings per share. SoundHound AI’s revenue for the quarter was up 51.7% on a year-over-year basis. Equities analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, insider James Ming Hom sold 28,843 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the insider owned 743,521 shares of the company’s stock, valued at $5,546,666.66. This represents a 3.73% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $484,855.24. Following the sale, the chief operating officer directly owned 1,669,497 shares of the company’s stock, valued at $12,454,447.62. The trade was a 3.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of SOUN. Hollencrest Capital Management boosted its holdings in shares of SoundHound AI by 197.5% during the first 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 period. Northwestern Mutual Wealth Management Co. increased its holdings in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC increased its holdings in SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the period. Danske Bank A S bought a new position in SoundHound AI during the 3rd quarter valued at approximately $26,000. Finally, SHP Wealth Management bought a new position in SoundHound AI during the 4th quarter valued at approximately $27,000. Hedge funds and other 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.