SoundHound AI (NASDAQ:SOUN) Stock Price Down 5.2% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 5.2% on Friday . The stock traded as low as $10.17 and last traded at $10.33. Approximately 26,284,282 shares traded hands during mid-day trading, a decline of 5% from the average daily volume of 27,691,646 shares. The stock had previously closed at $10.90.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Zacks Research downgraded SoundHound AI from a “hold” rating to a “strong sell” rating in a report on Monday, January 12th. HC Wainwright boosted their target price on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research note on Thursday, October 16th. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Stock Performance

The stock has a market cap of $4.34 billion, a price-to-earnings ratio of -12.30 and a beta of 2.65. The company has a 50-day simple moving average of $11.27 and a two-hundred day simple moving average of $13.53.

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

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 144,326 shares of the firm’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $1,627,997.28. Following the completion of the sale, the chief executive officer directly owned 2,198,287 shares in the company, valued at approximately $24,796,677.36. This trade represents a 6.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Majid Emami sold 32,741 shares of the business’s stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $10.66, for a total value of $349,019.06. Following the transaction, the senior vice president directly owned 532,845 shares in the company, valued at approximately $5,680,127.70. This trade represents a 5.79% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 462,265 shares of company stock worth $5,216,518 in the last 90 days. 9.17% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SOUN. Northwestern Mutual Wealth Management Co. raised its position in shares of SoundHound AI by 83.1% in the second 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. Danske Bank A S acquired a new position in SoundHound AI in the 3rd quarter valued at about $26,000. Advisors Asset Management Inc. raised its holdings in SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after acquiring an additional 1,023 shares during the period. Investors Research Corp raised its holdings in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after acquiring an additional 700 shares during the period. Finally, Financial Consulate Inc. acquired a new stake in SoundHound AI during the third quarter worth approximately $32,000. 19.28% of the stock is owned by 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.