SoundHound AI (NASDAQ:SOUN) Stock Price Down 8.9% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) was down 8.9% during trading on Thursday . The company traded as low as $7.26 and last traded at $7.35. Approximately 30,989,142 shares were traded during trading, an increase of 13% from the average daily volume of 27,357,582 shares. The stock had previously closed at $8.07.

Analyst Ratings Changes

A number of equities analysts have weighed in on SOUN shares. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Piper Sandler reduced their price objective on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a research note on Monday, January 5th. DA Davidson set a $14.00 price target on SoundHound AI in a report on Thursday, January 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Finally, Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. One research analyst has 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 MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Stock Performance

The stock has a market cap of $3.60 billion, a PE ratio of -10.19 and a beta of 2.64. The company’s 50-day moving average price is $10.69 and its two-hundred day moving average price is $13.29.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results 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. The firm had revenue of $42.05 million during the quarter, compared to analyst estimates of $40.48 million. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The company’s revenue was up 67.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.04) earnings per share. Equities research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 32,741 shares of the business’s stock in a transaction on Friday, December 26th. The shares were sold at an average price of $10.66, for a total value of $349,019.06. Following the completion of the sale, the senior vice president directly owned 532,845 shares of the company’s stock, valued at $5,680,127.70. The trade was a 5.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Nitesh Sharan sold 60,780 shares of the company’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $685,598.40. Following the sale, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at approximately $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 462,265 shares of company stock worth $5,216,518. Corporate insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. increased its stake in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC grew its holdings in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after purchasing an additional 1,544 shares during the last quarter. Danske Bank A S purchased a new position in shares of SoundHound AI in the third quarter worth $26,000. Advisors Asset Management Inc. raised its holdings in SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after buying an additional 1,023 shares during the last quarter. Finally, Investors Research Corp boosted its position in SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after buying an additional 700 shares during the period. 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.