SoundHound AI (NASDAQ:SOUN) Trading Down 1.8% on Analyst Downgrade

SoundHound AI, Inc. (NASDAQ:SOUN) was down 1.8% during mid-day trading on Wednesday after Piper Sandler lowered their price target on the stock from $7.00 to $6.00. Piper Sandler currently has a neutral rating on the stock. SoundHound AI traded as low as $6.00 and last traded at $6.01. 11,123,307 shares were traded during mid-day trading, a decline of 60% from the average session volume of 28,033,047 shares. The stock had previously closed at $6.12.

A number of other research analysts also recently weighed in on SOUN. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Finally, Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Sunday, September 13th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $12.75.

Insider Activity

In other news, insider James Hom sold 38,730 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the sale, the insider directly owned 1,105,555 shares in the company, valued at approximately $6,998,163.15. The trade was a 3.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the sale, the senior vice president directly owned 834,253 shares of the company’s stock, valued at approximately $5,280,821.49. This represents a 4.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 288,758 shares of company stock valued at $1,828,598 over the last three months. Corporate insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Geode Capital Management LLC boosted its stake in SoundHound AI by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after purchasing an additional 273,097 shares during the period. Swiss National Bank lifted its holdings in shares of SoundHound AI by 3.7% during the first quarter. Swiss National Bank now owns 767,100 shares of the company’s stock worth $5,270,000 after buying an additional 27,300 shares during the last quarter. California State Teachers Retirement System boosted its position in shares of SoundHound AI by 25.0% in the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after acquiring an additional 87,998 shares during the period. AXQ Capital LP boosted its position in shares of SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after acquiring an additional 203,345 shares during the period. Finally, SG Americas Securities LLC acquired a new stake in shares of SoundHound AI in the first quarter worth $1,606,000. 19.28% of the stock is owned by institutional investors and hedge funds.

SoundHound AI Price Performance

The firm’s 50 day moving average price is $6.66 and its 200-day moving average price is $7.17. The firm has a market cap of $2.67 billion, a price-to-earnings ratio of -15.82 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The firm had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same period in the prior year, the company earned ($0.19) EPS. The business’s quarterly revenue was up 45.0% compared to the same quarter last year. Analysts expect that SoundHound AI, Inc. will post -0.33 EPS for the current year.

About SoundHound AI

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.