SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.9% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 1.9% during mid-day trading on Wednesday. The stock traded as low as $4.55 and last traded at $4.61. 11,228,800 shares traded hands during trading, a decline of 58% from the average daily volume of 26,797,873 shares. The stock had previously closed at $4.70.

Analyst Ratings Changes

A number of research firms have recently commented on SOUN. Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, October 15th. Yorkville Ives started coverage on shares of SoundHound AI in a research report on Monday, October 5th. They set an “in-line” rating and a $6.50 price objective for the company. Piper Sandler lowered their target price on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd. DA Davidson dropped their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Finally, Wall Street Zen cut shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, SoundHound AI presently has an average rating of “Moderate Buy” and a consensus price target of $11.50.

SoundHound AI Price Performance

The stock has a fifty day simple moving average of $6.24 and a two-hundred day simple moving average of $6.94. The firm has a market capitalization of $2.05 billion, a P/E ratio of -12.13 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. The firm had revenue of $61.90 million for the quarter, compared to analysts’ expectations of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The company’s revenue for the quarter was up 45.0% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.19) EPS. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.32 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the sale, the chief operating officer directly owned 2,600,231 shares of the company’s stock, valued at approximately $16,459,462.23. The trade was a 2.66% decrease in their ownership of the stock. The transaction 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, SVP Majid Emami sold 38,730 shares of SoundHound AI stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the sale, the senior vice president directly owned 834,253 shares of the company’s stock, valued at approximately $5,280,821.49. This trade 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. Over the last three months, insiders have sold 288,758 shares of company stock valued at $1,828,598. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System increased its stake in SoundHound AI by 25.0% in the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after buying an additional 87,998 shares during the last quarter. Themes Management Co LLC grew its stake in shares of SoundHound AI by 86.5% during the 1st quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock worth $1,315,000 after acquiring an additional 88,820 shares during the period. SG Americas Securities LLC bought a new position in shares of SoundHound AI during the 1st quarter worth $1,606,000. Corient Private Wealth LP increased its holdings in SoundHound AI by 777.2% in the 2nd quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock worth $1,144,000 after acquiring an additional 156,612 shares during the last quarter. Finally, AXQ Capital LP increased its holdings in SoundHound AI by 395.6% in the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after acquiring an additional 203,345 shares during the last quarter. 19.28% of the stock is owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.