SoundHound AI (NASDAQ:SOUN) Stock Price Down 5.4% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares dropped 5.4% during mid-day trading on Monday . The company traded as low as $7.33 and last traded at $7.40. Approximately 5,369,219 shares traded hands during trading, a decline of 86% from the average daily volume of 37,961,307 shares. The stock had previously closed at $7.82.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. DA Davidson cut their target price on shares of SoundHound AI from $13.00 to $10.00 and set a “buy” rating on the stock in a report on Monday, April 14th. Cantor Fitzgerald raised shares of SoundHound AI to a “hold” rating in a report on Monday, February 24th. HC Wainwright reiterated a “buy” rating and set a $26.00 target price on shares of SoundHound AI in a research note on Monday, March 3rd. Finally, Northland Securities boosted their price target on SoundHound AI from $6.00 to $8.00 and gave the company a “market perform” rating in a research report on Tuesday, January 14th. Four investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $12.43.

SoundHound AI Price Performance

The company has a market cap of $2.96 billion, a PE ratio of -20.61 and a beta of 2.73. The stock has a fifty day simple moving average of $9.41 and a two-hundred day simple moving average of $10.95. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, February 27th. The company reported ($0.69) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.58). The company had revenue of $34.54 million for the quarter, compared to analysts’ expectations of $33.70 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. On average, equities analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider James Ming Hom sold 51,196 shares of the stock in a transaction on Monday, March 24th. The stock was sold at an average price of $10.25, for a total transaction of $524,759.00. Following the sale, the insider now owns 638,456 shares of the company’s stock, valued at $6,544,174. This trade represents a 7.42 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Diana Sroka sold 3,402 shares of the business’s stock in a transaction dated Monday, March 24th. The shares were sold at an average price of $10.08, for a total transaction of $34,292.16. Following the completion of the transaction, the director now directly owns 138,850 shares of the company’s stock, valued at $1,399,608. The trade was a 2.39 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 500,565 shares of company stock worth $4,999,726. 12.28% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

A number of hedge funds have recently bought and sold shares of SOUN. Blue Trust Inc. boosted its holdings in shares of SoundHound AI by 197.6% during the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company’s stock worth $25,000 after purchasing an additional 830 shares during the last quarter. Sound Income Strategies LLC boosted its position in shares of SoundHound AI by 2,542.0% in the fourth quarter. Sound Income Strategies LLC now owns 1,321 shares of the company’s stock worth $26,000 after acquiring an additional 1,271 shares during the last quarter. Orion Capital Management LLC acquired a new position in SoundHound AI during the fourth quarter worth approximately $30,000. Future Financial Wealth Managment LLC purchased a new position in SoundHound AI during the fourth quarter worth approximately $40,000. Finally, Compagnie Lombard Odier SCmA acquired a new position in SoundHound AI in the fourth quarter valued at $40,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.