SoundHound AI (NASDAQ:SOUN) Trading Down 1% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 1% during mid-day trading on Wednesday . The company traded as low as $6.72 and last traded at $6.78. 23,744,303 shares traded hands during trading, a decline of 17% from the average daily volume of 28,584,553 shares. The stock had previously closed at $6.85.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the company. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. DA Davidson lowered their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Piper Sandler cut their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. Finally, Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a report on Saturday, August 15th. One research analyst has rated the stock with a Strong Buy rating, four have issued 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, the company presently has an average rating of “Moderate Buy” and an average target price of $13.60.

SoundHound AI Trading Down 1.0%

The stock’s 50-day moving average is $6.72 and its two-hundred day moving average is $7.35. The company has a market capitalization of $3.01 billion, a PE ratio of -17.84 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The business had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same period in the prior year, the business earned ($0.19) EPS. The business’s revenue for the quarter was up 45.0% compared to the same quarter last year. On average, equities research analysts forecast that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Insider Activity

In other news, insider James Ming Hom sold 28,843 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 value of $215,168.78. Following the completion of the sale, the insider directly owned 743,521 shares in the company, valued at $5,546,666.66. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the sale, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. The trade was a 6.10% 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. Over the last 90 days, insiders have sold 269,365 shares of company stock worth $2,009,047. Company insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Hollencrest Capital Management grew 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 buying an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of SoundHound AI by 83.1% in 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 in the last quarter. Dogwood Wealth Management LLC lifted its position in shares of 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 acquiring an additional 1,544 shares during the period. Danske Bank A S purchased a new stake in SoundHound AI during the third quarter worth $26,000. Finally, SHP Wealth Management acquired a new stake in SoundHound AI in the 4th quarter valued at about $27,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

About SoundHound AI

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.