SoundHound AI (NASDAQ:SOUN) Trading Down 1.2% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 1.2% during trading on Monday . The company traded as low as $6.66 and last traded at $6.70. Approximately 14,144,251 shares traded hands during trading, a decline of 46% from the average daily volume of 26,365,779 shares. The stock had previously closed at $6.78.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on SOUN shares. DA Davidson set a $14.00 price target on SoundHound AI in a report on Thursday, January 8th. Piper Sandler reissued a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Finally, HC Wainwright lowered their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Price Performance

The firm has a 50-day simple moving average of $7.66 and a 200 day simple moving average of $11.62. The stock has a market capitalization of $2.87 billion, a P/E ratio of -135.77 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting the consensus estimate of ($0.02). The company had revenue of $55.06 million for the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The business’s quarterly revenue was up 59.4% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.05) earnings per share. Sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In other SoundHound AI news, CFO Nitesh Sharan sold 44,027 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the sale, the chief financial officer directly owned 1,661,121 shares of the company’s stock, valued at $11,279,011.59. The trade was a 2.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Majid Emami sold 31,019 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the sale, the senior vice president directly owned 501,826 shares in the company, valued at $3,407,398.54. The trade was a 5.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 337,649 shares of company stock worth $2,447,222. Company insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Institutional investors and hedge funds have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. increased its stake in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the period. Dogwood Wealth Management LLC increased its stake 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 valued at $26,000 after buying an additional 1,544 shares during the period. Danske Bank A S acquired a new stake in shares of SoundHound AI in the third quarter valued at about $26,000. SHP Wealth Management acquired a new stake in shares of SoundHound AI in the fourth quarter valued at about $27,000. Finally, Investors Research Corp increased its stake in shares of SoundHound AI by 62.4% in the third 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 and hedge funds 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.