SoundHound AI (NASDAQ:SOUN) Stock Price Down 7.4% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) fell 7.4% during mid-day trading on Monday . The stock traded as low as $10.72 and last traded at $10.79. 27,511,531 shares traded hands during mid-day trading, a decline of 38% from the average session volume of 44,119,566 shares. The stock had previously closed at $11.65.

Analyst Upgrades and Downgrades

Several research analysts have commented on SOUN shares. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research report on Tuesday, October 14th. Oppenheimer began coverage on SoundHound AI in a research report on Thursday, September 11th. They set a “market perform” rating on the stock. HC Wainwright increased their price objective on shares of SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research report on Thursday, October 16th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Finally, Piper Sandler upped their target price on shares of SoundHound AI from $12.00 to $15.00 and gave the company a “neutral” rating in a research note on Friday, November 7th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $17.07.

SoundHound AI Price Performance

The business’s 50-day moving average price is $14.75 and its two-hundred day moving average price is $13.41. The firm has a market cap of $4.62 billion, a price-to-earnings ratio of -13.08 and a beta of 2.63.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.06. The firm had revenue of $42.05 million for the quarter, compared to analysts’ expectations of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The firm’s quarterly revenue was up 67.6% on a year-over-year basis. During the same period in the prior year, the company posted ($0.04) earnings per share. Equities analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In other SoundHound AI news, CTO Timothy Stonehocker sold 70,524 shares of the stock in a transaction that occurred on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total transaction of $1,410,480.00. Following the transaction, the chief technology officer owned 606,525 shares of the company’s stock, valued at $12,130,500. This trade represents a 10.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Nitesh Sharan sold 60,376 shares of the company’s stock in a transaction that occurred on Tuesday, October 14th. The shares were sold at an average price of $21.21, for a total value of $1,280,574.96. Following the sale, the chief financial officer directly owned 1,765,928 shares in the company, valued at approximately $37,455,332.88. This represents a 3.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 787,260 shares of company stock valued at $13,973,056 over the last three months. Company insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SOUN. Northwestern Mutual Wealth Management Co. grew its position in shares of 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 buying an additional 1,060 shares during the last quarter. Danske Bank A S acquired a new position in SoundHound AI in the third quarter valued at approximately $26,000. Advisors Asset Management Inc. grew its holdings in shares of SoundHound AI by 68.4% during the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after purchasing an additional 1,023 shares during the last quarter. Investors Research Corp raised its position in shares of SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after purchasing an additional 700 shares during the period. Finally, AlphaQuest LLC bought a new stake in shares of SoundHound AI in the 1st quarter worth approximately $32,000. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.