SoundHound AI (NASDAQ:SOUN) Trading Down 1.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 1.4% during trading on Wednesday . The stock traded as low as $7.74 and last traded at $7.79. Approximately 26,041,810 shares were traded during trading, a decline of 4% from the average daily volume of 27,020,455 shares. The stock had previously closed at $7.90.

Wall Street Analysts Forecast Growth

SOUN has been the subject of several recent research reports. DA Davidson set a $14.00 target price on shares of SoundHound AI in a research note on Thursday, January 8th. Piper Sandler reaffirmed a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. Finally, HC Wainwright cut their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Price Performance

The company has a fifty day moving average price of $9.23 and a 200 day moving average price of $12.60. The company has a market cap of $3.27 billion, a PE ratio of -155.77 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The business had revenue of $55.06 million during the quarter, compared to analyst estimates of $53.88 million. During the same quarter in the prior year, the firm earned ($0.05) earnings per share. SoundHound AI’s revenue for the quarter was up 59.4% on a year-over-year basis. As a group, sell-side analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In related news, SVP Majid Emami sold 32,741 shares of the company’s stock in a transaction 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 sale, the senior vice president directly 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 document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Timothy Stonehocker sold 29,676 shares of the business’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $12.00, for a total transaction of $356,112.00. Following the sale, the chief technology officer owned 544,179 shares in the company, valued at approximately $6,530,148. This trade represents a 5.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 460,922 shares of company stock valued at $5,199,073 over the last ninety days. Insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently modified their holdings of SOUN. Sound Income Strategies LLC raised its position in shares of SoundHound AI by 37.3% in the 3rd 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 last quarter. Investors Research Corp increased its stake 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 purchasing an additional 700 shares in the last quarter. EP Wealth Advisors LLC increased its stake in SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after purchasing an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. raised its holdings in SoundHound AI by 2.7% in the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after buying an additional 830 shares during the last quarter. Finally, Insigneo Advisory Services LLC lifted its stake in shares of SoundHound AI by 7.4% in the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock worth $200,000 after buying an additional 858 shares in the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.