SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.8% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares dropped 2.8% during mid-day trading on Wednesday . The stock traded as low as $6.41 and last traded at $6.50. 29,747,396 shares were traded during trading, an increase of 8% from the average session volume of 27,428,359 shares. The stock had previously closed at $6.69.

Wall Street Analyst Weigh In

Several brokerages have weighed in on SOUN. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a research note 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 issued a Sell rating to the company. According to MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Performance

The stock has a 50-day moving average price of $7.55 and a two-hundred day moving average price of $8.15. The stock has a market capitalization of $2.81 billion, a P/E ratio of -13.83 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results 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). The company had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The business’s revenue was up 51.7% on a year-over-year basis. During the same quarter last year, the firm earned ($0.06) EPS. Equities analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the transaction, the chief technology officer directly owned 502,290 shares of the company’s stock, valued at $3,747,083.40. This represents a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the insider owned 743,521 shares of the company’s stock, valued at $5,546,666.66. This trade represents a 3.73% decrease in their ownership of the stock. 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 90 days, insiders sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in SOUN. Handelsbanken Fonder AB lifted its stake in shares of SoundHound AI by 17.4% in the 2nd quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company’s stock valued at $802,000 after purchasing an additional 18,400 shares during the period. Focus Financial Network Inc. grew its stake in SoundHound AI by 21.4% in the second quarter. Focus Financial Network Inc. now owns 48,229 shares of the company’s stock worth $312,000 after purchasing an additional 8,516 shares during the period. IFC & Insurance Marketing Inc. grew its stake in SoundHound AI by 17.9% in the second quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company’s stock worth $273,000 after purchasing an additional 6,427 shares during the period. Hennion & Walsh Asset Management Inc. raised its holdings in SoundHound AI by 19.2% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company’s stock worth $768,000 after purchasing an additional 19,133 shares in the last quarter. Finally, Empowered Funds LLC raised its holdings in SoundHound AI by 19.6% in the first quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock worth $95,000 after purchasing an additional 2,277 shares in the last quarter. 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.