SoundHound AI (NASDAQ:SOUN) Trading Down 3.4% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 3.4% during mid-day trading on Monday . The stock traded as low as $6.86 and last traded at $6.88. 23,546,710 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 27,427,508 shares. The stock had previously closed at $7.12.

Analyst Ratings Changes

Several research analysts have commented on SOUN shares. HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. DA Davidson reaffirmed a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Finally, Piper Sandler reiterated a “neutral” rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One investment 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. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Down 1.8%

The firm has a market capitalization of $2.74 billion, a PE ratio of -13.45 and a beta of 2.56. The company’s 50-day simple moving average is $7.96 and its 200 day simple moving average is $8.68.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data 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). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. During the same period in the previous year, the firm earned ($0.06) EPS. The firm’s quarterly revenue was up 51.7% on a year-over-year basis. On average, sell-side analysts forecast that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Majid Emami sold 28,843 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the transaction, the senior vice president directly owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the sale, the chief technology officer owned 502,290 shares of the company’s stock, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently added to or reduced their stakes in the business. Danske Bank A S purchased a new position in shares of SoundHound AI in the 3rd quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. increased its stake in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC raised its holdings in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after buying an additional 1,544 shares during the last quarter. SHP Wealth Management purchased a new position in shares of SoundHound AI in the fourth quarter worth $27,000. Finally, Parallel Advisors LLC lifted its stake in shares of SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after buying an additional 960 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.