SoundHound AI (NASDAQ:SOUN) Shares Down 1.6% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 1.6% on Friday. The company traded as low as $4.35 and last traded at $4.43. Approximately 10,588,320 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 26,640,232 shares. The stock had previously closed at $4.50.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on SOUN. Yorkville Ives started coverage on SoundHound AI in a research report on Monday, October 5th. They set an “in-line” rating and a $6.50 price target on the stock. Piper Sandler dropped their price objective on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Tuesday, September 22nd. DA Davidson dropped their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Wall Street Zen downgraded SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. Finally, Weiss Ratings raised SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $11.50.

SoundHound AI Stock Performance

The stock has a market capitalization of $1.97 billion, a P/E ratio of -11.66 and a beta of 2.73. The firm’s fifty day simple moving average is $6.12 and its 200 day simple moving average is $6.91.

SoundHound AI (NASDAQ:SOUN) last issued 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 net margin of 67.45% and a negative return on equity of 30.22%. The company had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same period in the previous year, the company earned ($0.19) EPS. The business’s revenue for the quarter was up 45.0% compared to the same quarter last year. Analysts anticipate that SoundHound AI, Inc. will post -0.32 earnings per share for the current fiscal year.

Insider Activity

In related news, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the transaction, the insider directly owned 1,105,555 shares of the company’s stock, valued at $6,998,163.15. This trade represents a 3.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available 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 business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the transaction, the senior vice president owned 834,253 shares of the company’s stock, valued at approximately $5,280,821.49. This represents a 4.44% decrease in their ownership of the stock. 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. Over the last ninety 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 and other institutional investors have recently modified their holdings of SOUN. Swiss National Bank raised its holdings in shares of SoundHound AI by 3.7% during the 1st quarter. Swiss National Bank now owns 767,100 shares of the company’s stock worth $5,270,000 after buying an additional 27,300 shares in the last quarter. California State Teachers Retirement System boosted its stake in SoundHound AI by 25.0% in the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after buying an additional 87,998 shares in the last quarter. AXQ Capital LP boosted its stake in SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after buying an additional 203,345 shares in the last quarter. SG Americas Securities LLC acquired a new stake in SoundHound AI in the first quarter valued at about $1,606,000. Finally, Themes Management Co LLC boosted its stake in SoundHound AI by 86.5% in the first quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock valued at $1,315,000 after buying an additional 88,820 shares in the last quarter. Institutional investors own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.