SoundHound AI (NASDAQ:SOUN) Stock Price Down 6.3% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) was down 6.3% on Tuesday . The stock traded as low as $6.76 and last traded at $7.02. Approximately 25,801,289 shares were traded during mid-day trading, a decline of 6% from the average daily volume of 27,509,656 shares. The stock had previously closed at $7.49.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on SOUN shares. 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. Piper Sandler reiterated 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. DA Davidson reiterated a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, HC Wainwright reduced 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. One 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 issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Performance

The firm has a fifty day simple moving average of $7.87 and a 200 day simple moving average of $9.04. The company has a market capitalization of $3.04 billion, a PE ratio of -14.94 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The firm’s revenue was up 51.7% compared to the same quarter last year. During the same period last year, the business posted ($0.06) EPS. Research analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, insider James Ming Hom sold 31,019 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 $210,619.01. Following the sale, the insider owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. This trade represents a 3.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 directly owned 2,073,777 shares in the company, valued at $14,080,945.83. This trade represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

Institutional investors have recently made changes to their positions in the business. Danske Bank A S acquired a new stake in shares of SoundHound AI in the 3rd quarter worth $26,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of SoundHound AI by 83.1% in the 2nd 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 in the last quarter. Dogwood Wealth Management LLC boosted its position in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after purchasing an additional 1,544 shares in the last quarter. SHP Wealth Management acquired a new stake in shares of SoundHound AI in the 4th quarter worth $27,000. Finally, Parallel Advisors LLC boosted its position in shares of SoundHound AI by 42.8% in the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after purchasing an additional 960 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.