SoundHound AI (NASDAQ:SOUN) Trading Down 6.4% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 6.4% on Tuesday . The stock traded as low as $6.44 and last traded at $6.44. 20,499,013 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 27,353,273 shares. The stock had previously closed at $6.88.

Analysts Set New Price Targets

A number of equities analysts have commented on SOUN shares. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Piper Sandler reissued a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, DA Davidson restated a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Trading Down 3.5%

The company has a market cap of $2.65 billion, a PE ratio of -13.03 and a beta of 2.56. The company’s 50 day moving average is $7.95 and its 200 day moving average is $8.63.

SoundHound AI (NASDAQ:SOUN) last issued 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 business had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm’s revenue was up 51.7% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.06) earnings per share. Analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, SVP Majid Emami sold 28,843 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the senior vice president owned 472,983 shares in the company, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 268,022 shares of company stock worth $1,999,444 in the last quarter. 8.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of the business. Empowered Funds LLC increased its position in shares of SoundHound AI by 19.6% in the first quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after buying an additional 2,277 shares in the last quarter. NewEdge Advisors LLC raised its position in shares of SoundHound AI by 62.1% during the 1st quarter. NewEdge Advisors LLC now owns 95,657 shares of the company’s stock worth $657,000 after purchasing an additional 36,644 shares during the last quarter. Verus Capital Partners LLC acquired a new stake in SoundHound AI in the 1st quarter worth about $71,000. Amundi grew its holdings in shares of SoundHound AI by 112.4% during the first quarter. Amundi now owns 24,046 shares of the company’s stock worth $165,000 after buying an additional 12,725 shares in the last quarter. Finally, California State Teachers Retirement System lifted its position in SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after buying an additional 87,998 shares in the last quarter. Hedge funds and other institutional investors 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.