SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.8% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) fell 1.8% during trading on Friday . The stock traded as low as $8.09 and last traded at $8.17. 32,724,005 shares changed hands during trading, an increase of 19% from the average session volume of 27,532,482 shares. The stock had previously closed at $8.32.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on SOUN. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. HC Wainwright dropped their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. Piper Sandler restated a “neutral” rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, DA Davidson restated a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Down 1.8%

The company has a 50-day simple moving average of $7.58 and a two-hundred day simple moving average of $9.51. The stock has a market cap of $3.45 billion, a P/E ratio of -17.38 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. During the same quarter in the previous year, the firm posted ($0.06) EPS. The business’s revenue for the quarter was up 51.7% compared to the same quarter last year. As a group, sell-side analysts forecast that SoundHound AI, Inc. will post -0.34 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, insider James Ming Hom 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 value of $210,619.01. Following the completion of the sale, the insider owned 772,364 shares in the company, valued at approximately $5,244,351.56. The trade was a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Michael Zagorsek sold 52,968 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 value of $359,652.72. Following the completion of the sale, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at $11,777,193.89. The trade was a 2.96% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 307,973 shares of company stock valued at $2,091,110. Insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after purchasing an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after acquiring an additional 273,097 shares in the last quarter. Morgan Stanley raised its holdings in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after acquiring an additional 2,917,280 shares in the last quarter. State Street Corp raised its holdings in shares of SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after acquiring an additional 80,908 shares in the last quarter. Finally, UBS Group AG raised its holdings in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after acquiring an additional 2,676,707 shares in the last quarter. 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.