SoundHound AI (NASDAQ:SOUN) Shares Down 4.1% – Time to Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) traded down 4.1% on Tuesday . The company traded as low as $6.85 and last traded at $7.03. 31,203,527 shares changed hands during trading, an increase of 13% from the average session volume of 27,534,666 shares. The stock had previously closed at $7.33.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. HC Wainwright reduced their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. DA Davidson reaffirmed a “buy” rating and set a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, five have issued 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 has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Performance

The stock has a market cap of $3.04 billion, a P/E ratio of -14.96 and a beta of 2.56. The stock has a 50-day moving average price of $7.93 and a 200-day moving average price of $8.88.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The business 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 business’s revenue was up 51.7% compared to the same quarter last year. During the same quarter last year, the business posted ($0.06) EPS. Sell-side analysts forecast that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Nitesh Sharan sold 44,027 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the sale, the chief financial officer owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. This trade represents a 2.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Michael Zagorsek sold 52,968 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $359,652.72. Following the sale, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at approximately $11,777,193.89. This trade represents a 2.96% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 307,973 shares of company stock worth $2,091,110. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently bought and sold shares of SOUN. Vanguard Group Inc. lifted its position in SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after buying an additional 6,132,648 shares during the last quarter. Morgan Stanley lifted its position in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after buying an additional 2,917,280 shares during the last quarter. UBS Group AG lifted its position in SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after buying an additional 2,676,707 shares during the last quarter. Voloridge Investment Management LLC lifted its position in SoundHound AI by 2,259.7% in the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock worth $21,929,000 after buying an additional 2,106,298 shares during the last quarter. Finally, Jump Financial LLC bought a new stake in SoundHound AI in the 3rd quarter worth approximately $21,679,000. Institutional investors 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.