SoundHound AI (NASDAQ:SOUN) Shares Down 1.8% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price fell 1.8% during trading on Wednesday . The stock traded as low as $6.22 and last traded at $6.3230. Approximately 28,131,715 shares were traded during mid-day trading, an increase of 3% from the average session volume of 27,378,916 shares. The stock had previously closed at $6.44.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. Piper Sandler reissued a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. HC Wainwright cut their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, DA Davidson restated a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. One 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Price Performance

The company’s 50 day simple moving average is $7.93 and its two-hundred day simple moving average is $8.59. The company has a market cap of $2.78 billion, a PE ratio of -13.46 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. During the same quarter in the prior year, the company posted ($0.06) earnings per share. The business’s revenue was up 51.7% compared to the same quarter last year. Sell-side analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the sale, the senior vice president directly owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. The trade was a 5.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. This trade represents a 6.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 268,022 shares of company stock valued at $1,999,444. Insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently bought and sold shares of the stock. Morgan Stanley lifted its stake in SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after acquiring an additional 2,917,280 shares during the last quarter. UBS Group AG increased its holdings in shares of SoundHound AI by 77.6% in the 4th 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 during the period. Voloridge Investment Management LLC raised its holdings in shares of SoundHound AI by 2,259.7% in the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after buying an additional 2,106,298 shares during the last quarter. Vanguard Group Inc. increased its position in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after acquiring an additional 1,909,868 shares during the period. Finally, Jump Financial LLC purchased a new stake in SoundHound AI during the 3rd quarter valued at approximately $21,679,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

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.