SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.2% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares dropped 3.2% on Thursday . The company traded as low as $10.90 and last traded at $10.92. Approximately 25,544,595 shares were traded during mid-day trading, a decline of 13% from the average daily volume of 29,304,088 shares. The stock had previously closed at $11.28.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on SOUN. HC Wainwright raised their price target on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research note on Thursday, October 16th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Piper Sandler dropped their price target on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, January 5th. Zacks Research cut shares of SoundHound AI from a “hold” rating to a “strong sell” rating in a report on Monday. Finally, Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and upped their target price for the company from $13.00 to $15.00 in a report on Friday, December 12th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, two have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, SoundHound AI currently has a consensus rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Trading Down 3.2%

The business’s fifty day moving average price is $11.64 and its 200 day moving average price is $13.55. The firm has a market capitalization of $4.59 billion, a price-to-earnings ratio of -13.00 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.09) by $0.06. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The company had revenue of $42.05 million for the quarter, compared to the consensus estimate of $40.48 million. During the same period last year, the firm posted ($0.04) EPS. SoundHound AI’s revenue for the quarter was up 67.6% on a year-over-year basis. As a group, sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In related news, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the transaction, the chief operating officer directly owned 1,787,459 shares of the company’s stock, valued at $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CTO Timothy Stonehocker sold 29,676 shares of the firm’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $12.00, for a total value of $356,112.00. Following the completion of the sale, the chief technology officer directly owned 544,179 shares of the company’s stock, valued at $6,530,148. This represents a 5.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 462,265 shares of company stock worth $5,216,518 in the last ninety days. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently made changes to their positions in SOUN. Northwestern Mutual Wealth Management Co. boosted its holdings in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after buying an additional 1,060 shares in the last quarter. Danske Bank A S acquired a new stake in shares of SoundHound AI during the 3rd quarter valued at approximately $26,000. Advisors Asset Management Inc. boosted its stake in shares of SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock worth $27,000 after acquiring an additional 1,023 shares in the last quarter. Investors Research Corp grew its holdings in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after acquiring an additional 700 shares during the period. Finally, Financial Consulate Inc. purchased a new position in SoundHound AI in the 3rd quarter valued at approximately $32,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

About SoundHound AI

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.