SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.5% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 3.5% on Friday. The company traded as low as $4.65 and last traded at $4.72. Approximately 17,818,633 shares changed hands during trading, a decline of 34% from the average session volume of 27,035,342 shares. The stock had previously closed at $4.89.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. DA Davidson reduced their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Wall Street Zen cut shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 26th. Piper Sandler lowered their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Finally, Weiss Ratings upgraded SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $12.75.

SoundHound AI Trading Down 3.5%

The firm has a market capitalization of $2.10 billion, a P/E ratio of -12.42 and a beta of 2.73. The firm has a 50-day moving average of $6.35 and a two-hundred day moving average of $6.96.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating 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 for the quarter, compared to analyst estimates of $52.38 million. During the same period last year, the firm posted ($0.19) earnings per share. SoundHound AI’s revenue was up 45.0% compared to the same quarter last year. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.32 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In related news, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $450,145.29. Following the sale, the chief operating officer directly owned 2,600,231 shares of the company’s stock, valued at approximately $16,459,462.23. The trade was a 2.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the sale, the insider directly owned 1,105,555 shares in the company, valued at $6,998,163.15. This trade represents a 3.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 288,758 shares of company stock worth $1,828,598 over the last three months. 8.84% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. SHP Wealth Management bought a new stake in shares of SoundHound AI during the fourth quarter worth $27,000. Hollencrest Capital Management increased 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 in the last quarter. Vermillion Wealth Management Inc. increased its holdings in shares of SoundHound AI by 92.0% during the first quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock worth $63,000 after buying an additional 4,409 shares in the last quarter. Clarus Group Inc. acquired a new position in shares of SoundHound AI during the first quarter worth $69,000. Finally, 180 Wealth Advisors LLC bought a new position in shares of SoundHound AI in the 1st quarter valued at $69,000. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.