SoundHound AI (NASDAQ:SOUN) Shares Down 11.6% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded down 11.6% during mid-day trading on Tuesday . The stock traded as low as $15.03 and last traded at $15.13. 46,873,102 shares were traded during trading, an increase of 2% from the average session volume of 46,104,133 shares. The stock had previously closed at $17.11.

Wall Street Analysts Forecast Growth

SOUN has been the topic of several analyst reports. Wall Street Zen cut SoundHound AI from a “hold” rating to a “sell” rating in a research report on Saturday, August 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research note on Tuesday, October 14th. HC Wainwright raised their price target on SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research note on Thursday, October 16th. Wedbush reaffirmed an “outperform” rating and issued a $16.00 price target on shares of SoundHound AI in a research note on Thursday, September 11th. Finally, Northland Securities upgraded SoundHound AI from a “market perform” rating to an “outperform” rating and set a $14.50 price objective for the company in a report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $15.50.

SoundHound AI Stock Performance

The stock has a market capitalization of $6.17 billion, a price-to-earnings ratio of -24.02 and a beta of 2.60. The firm has a fifty day moving average of $16.47 and a 200-day moving average of $12.82.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The business had revenue of $42.68 million for the quarter, compared to analyst estimates of $32.88 million. During the same quarter in the prior year, the firm posted ($0.11) earnings per share. The business’s quarterly revenue was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. On average, analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling

In other news, CTO Timothy Stonehocker sold 70,524 shares of the company’s stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $1,410,480.00. Following the transaction, the chief technology officer directly owned 606,525 shares of the company’s stock, valued at approximately $12,130,500. This represents a 10.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Keyvan Mohajer sold 138,523 shares of the company’s stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $2,216,368.00. Following the completion of the transaction, the chief executive officer directly owned 2,461,267 shares in the company, valued at $39,380,272. This trade represents a 5.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 785,917 shares of company stock valued at $13,955,610 in the last three months. Insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of large investors have recently bought and sold shares of SOUN. Janney Montgomery Scott LLC raised its position in shares of SoundHound AI by 7.3% during the first quarter. Janney Montgomery Scott LLC now owns 22,193 shares of the company’s stock valued at $180,000 after buying an additional 1,502 shares during the last quarter. KBC Group NV raised its position in SoundHound AI by 22.6% in the first quarter. KBC Group NV now owns 16,206 shares of the company’s stock worth $132,000 after purchasing an additional 2,985 shares in the last quarter. Amalgamated Bank raised its position in SoundHound AI by 13.7% in the first quarter. Amalgamated Bank now owns 11,162 shares of the company’s stock worth $91,000 after purchasing an additional 1,343 shares in the last quarter. Vontobel Holding Ltd. acquired a new position in SoundHound AI in the first quarter worth about $581,000. Finally, Teacher Retirement System of Texas acquired a new position in SoundHound AI in the first quarter worth about $399,000. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

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.