SoundHound AI (NASDAQ:SOUN) Shares Down 3.5% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 3.5% on Friday. The stock traded as low as $4.65 and last traded at $4.72. Approximately 17,818,633 shares traded hands during trading, a decline of 34% from the average daily volume of 27,035,342 shares. The stock had previously closed at $4.89.

Analyst Ratings Changes

SOUN has been the topic of a number of analyst reports. Weiss Ratings raised SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday. Piper Sandler lowered their price objective on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. 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, Wall Street Zen lowered shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 26th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and one has given 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 $12.75.

SoundHound AI Stock Performance

The firm has a market capitalization of $2.10 billion, a PE ratio of -12.42 and a beta of 2.73. The company’s 50-day moving average price is $6.41 and its 200-day moving average price is $6.98.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating 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 quarter in the prior year, the company posted ($0.19) earnings per share. SoundHound AI’s revenue for the quarter was up 45.0% compared to the same quarter last year. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider James Hom sold 38,730 shares of the company’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the transaction, the insider directly owned 1,105,555 shares of the company’s stock, valued at approximately $6,998,163.15. This represents a 3.38% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the transaction, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. The trade was a 4.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 288,758 shares of company stock valued at $1,828,598. 8.84% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds have recently added to or reduced their stakes in SOUN. Essex LLC lifted its position in shares of SoundHound AI by 11.1% during the 3rd quarter. Essex LLC now owns 31,700 shares of the company’s stock worth $191,000 after buying an additional 3,155 shares during the last quarter. Krilogy Financial LLC purchased a new position in shares of SoundHound AI in the 3rd quarter valued at $62,000. NewEdge Advisors LLC grew its position in shares of SoundHound AI by 38.1% in the 2nd quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock valued at $855,000 after buying an additional 36,415 shares during the last quarter. IFP Advisors Inc grew its position in shares of SoundHound AI by 10.7% in the 2nd quarter. IFP Advisors Inc now owns 32,748 shares of the company’s stock valued at $212,000 after buying an additional 3,163 shares during the last quarter. Finally, Allworth Financial LP raised its stake in SoundHound AI by 12.7% during the 2nd quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock worth $146,000 after acquiring an additional 2,537 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.