SoundHound AI (NASDAQ:SOUN) Trading Down 6.8% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 6.8% during mid-day trading on Friday . The stock traded as low as $8.33 and last traded at $8.46. Approximately 28,649,607 shares traded hands during trading, an increase of 7% from the average daily volume of 26,711,791 shares. The stock had previously closed at $9.08.

Analyst Ratings Changes

Several analysts have commented on the company. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $13.00 to $15.00 in a research note 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. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. Finally, HC Wainwright raised their target price on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research note on Thursday, October 16th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, SoundHound AI currently has an average rating of “Moderate Buy” and a consensus price target of $16.07.

SoundHound AI Stock Performance

The company has a market capitalization of $3.55 billion, a PE ratio of -10.07 and a beta of 2.65. The stock’s fifty day simple moving average is $11.13 and its 200-day simple moving average is $13.45.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. The business had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The business’s revenue for the quarter was up 67.6% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.04) earnings per share. On average, equities analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 32,741 shares of the company’s stock in a transaction dated Friday, December 26th. The stock was sold at an average price of $10.66, for a total value of $349,019.06. Following the completion of the sale, the senior vice president owned 532,845 shares of the company’s stock, valued at $5,680,127.70. This represents a 5.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keyvan Mohajer sold 144,326 shares of the stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the completion of the sale, the chief executive officer directly owned 2,198,287 shares of the company’s stock, valued at $24,796,677.36. This trade represents a 6.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 462,265 shares of company stock worth $5,216,518. Company insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

Institutional investors have recently added to or reduced their stakes in the stock. Danske Bank A S acquired a new stake in SoundHound AI during the third quarter valued at approximately $26,000. 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 valued at $29,000 after acquiring an additional 700 shares in the last quarter. Financial Consulate Inc. bought a new position in SoundHound AI during the third quarter worth $32,000. Sound Income Strategies LLC boosted its holdings in SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after purchasing an additional 575 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

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.