SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.5% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 1.5% on Friday . The company traded as low as $7.02 and last traded at $7.11. 24,494,163 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 28,661,592 shares. The stock had previously closed at $7.22.

Analyst Ratings Changes

SOUN has been the subject of several analyst reports. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. DA Davidson dropped their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Piper Sandler decreased their price target on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, August 6th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Wall Street Zen upgraded shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a report on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $13.60.

SoundHound AI Stock Performance

The stock has a market cap of $3.16 billion, a price-to-earnings ratio of -18.71 and a beta of 2.64. The business’s fifty day simple moving average is $6.71 and its 200 day simple moving average is $7.38.

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

Insider Activity at SoundHound AI

In other news, COO Michael Zagorsek sold 64,994 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This trade represents a 3.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the firm’s 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 transaction, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. This trade represents a 5.75% 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 quarter. 8.84% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

Large investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in shares of 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 acquiring an additional 1,909,868 shares in the last quarter. 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 during the period. California State Teachers Retirement System raised its stake in SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after purchasing an additional 87,998 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of SoundHound AI by 140.5% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after buying an additional 155,743 shares during the period. Finally, Geode Capital Management LLC lifted its stake in SoundHound AI by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after acquiring an additional 273,097 shares in the last quarter. 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.