SoundHound AI (NASDAQ:SOUN) Trading Down 4.8% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded down 4.8% on Monday . The company traded as low as $8.36 and last traded at $8.45. 34,769,135 shares traded hands during mid-day trading, an increase of 24% from the average session volume of 27,965,973 shares. The stock had previously closed at $8.88.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. HC Wainwright lowered their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. DA Davidson restated a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, Piper Sandler restated a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Performance

The business has a fifty day simple moving average of $7.57 and a 200 day simple moving average of $10.18. The stock has a market cap of $3.57 billion, a price-to-earnings ratio of -17.98 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The company had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 41.46%. SoundHound AI’s quarterly revenue was up 51.7% compared to the same quarter last year. During the same quarter last year, the company posted ($0.06) EPS. On average, equities research analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Activity

In other SoundHound AI news, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the sale, the chief financial officer owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. This represents a 2.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $845,422.90. Following the sale, the chief executive officer owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. This trade represents a 5.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 307,973 shares of company stock worth $2,091,110 in the last quarter. 8.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in shares of SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after purchasing an additional 1,909,868 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in shares of SoundHound AI by 252.8% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 218,868 shares of the company’s stock worth $3,519,000 after purchasing an additional 156,835 shares during the last quarter. Rakuten Securities Inc. boosted its holdings in shares of SoundHound AI by 877.9% during the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock worth $3,326,000 after purchasing an additional 299,492 shares during the last quarter. Clear Street Group Inc. purchased a new position in shares of SoundHound AI in the 3rd quarter worth $12,944,000. Finally, Nisa Investment Advisors LLC raised its position in shares of SoundHound AI by 97.7% in the 3rd quarter. Nisa Investment Advisors LLC now owns 90,041 shares of the company’s stock worth $1,448,000 after buying an additional 44,496 shares during the period. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.