SoundHound AI (NASDAQ:SOUN) Trading Down 4.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 4.4% during mid-day trading on Monday . The stock traded as low as $6.99 and last traded at $7.00. Approximately 17,118,952 shares were traded during trading, a decline of 41% from the average session volume of 28,773,664 shares. The stock had previously closed at $7.32.

Analysts Set New Price Targets

Several research firms have recently commented on SOUN. Piper Sandler lowered their target price on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, August 6th. Wall Street Zen raised SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 15th. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. DA Davidson lowered their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, SoundHound AI currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.60.

SoundHound AI Stock Performance

The firm has a market cap of $3.13 billion, a P/E ratio of -18.55 and a beta of 2.64. The stock’s 50-day moving average is $6.71 and its 200 day moving average is $7.39.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same period in the previous year, the company posted ($0.19) earnings per share. The company’s revenue for the quarter was up 45.0% on a year-over-year basis. On average, research analysts anticipate that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other news, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the transaction, the chief executive officer owned 1,947,237 shares in the company, valued at $14,526,388.02. The trade was a 6.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the business’s stock in a transaction that occurred on 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 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 SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 268,022 shares of company stock worth $1,999,444 over the last three months. Company insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Hollencrest Capital Management raised its holdings in shares of SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after acquiring an additional 2,400 shares during the period. Northwestern Mutual Wealth Management Co. boosted 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 increased its holdings in SoundHound AI by 152.1% during the 4th 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 in the last quarter. Danske Bank A S bought a new position in SoundHound AI during the 3rd quarter worth about $26,000. Finally, SHP Wealth Management acquired a new stake in shares of SoundHound AI in the 4th quarter valued at about $27,000. Institutional investors and hedge funds 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.