SoundHound AI (NASDAQ:SOUN) Shares Gap Down After Analyst Downgrade

SoundHound AI, Inc. (NASDAQ:SOUN) gapped down prior to trading on Monday after HC Wainwright lowered their price target on the stock from $26.00 to $20.00. The stock had previously closed at $8.60, but opened at $7.95. HC Wainwright currently has a buy rating on the stock. SoundHound AI shares last traded at $8.4680, with a volume of 7,865,872 shares traded.

A number of other equities analysts have also weighed in on SOUN. DA Davidson set a $14.00 price target on shares of SoundHound AI in a research report on Thursday, January 8th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price target for the company from $13.00 to $15.00 in a report on Friday, December 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Finally, Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, SoundHound AI presently has a consensus rating of “Moderate Buy” and an average target price of $14.93.

Insider Activity at SoundHound AI

In other SoundHound AI news, CFO Nitesh Sharan sold 60,780 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $685,598.40. Following the completion of the transaction, the chief financial officer owned 1,705,148 shares in the company, valued at $19,234,069.44. This trade represents a 3.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider James Ming Hom sold 42,600 shares of SoundHound AI stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the insider directly owned 803,383 shares in the company, valued at approximately $9,062,160.24. The trade was a 5.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 460,922 shares of company stock valued at $5,199,073 in the last 90 days. 9.17% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

SoundHound AI Stock Down 1.7%

The company’s 50 day moving average price is $9.58 and its two-hundred day moving average price is $12.88. The firm has a market cap of $3.55 billion, a PE ratio of -168.99 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.82%. The firm had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. During the same period in the previous year, the company earned ($0.05) EPS. The firm’s revenue for the quarter was up 59.4% compared to the same quarter last year. On average, analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

SoundHound AI Company Profile

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.