SoundHound AI (NASDAQ:SOUN) Stock Falls 2.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 2.4% on Thursday. The company traded as low as $4.44 and last traded at $4.50. Approximately 10,954,915 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 26,718,189 shares. The stock had previously closed at $4.61.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on SOUN shares. Piper Sandler lowered their target price on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. DA Davidson reduced their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Yorkville Ives began coverage on shares of SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 price objective for the company. Finally, Wall Street Zen upgraded shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday. 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 assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $11.50.

SoundHound AI Trading Down 1.6%

The stock has a market capitalization of $1.97 billion, a PE ratio of -11.66 and a beta of 2.73. The stock has a 50 day moving average price of $6.06 and a 200-day moving average price of $6.89.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating analysts’ consensus estimates 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 was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.19) earnings per share. Research analysts forecast that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.

Insider Buying and Selling at SoundHound AI

In related news, COO Michael Zagorsek sold 71,113 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 $450,145.29. Following the completion of the sale, the chief operating officer directly owned 2,600,231 shares in the company, valued at approximately $16,459,462.23. The trade was a 2.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 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 sale, the senior vice president owned 834,253 shares of the company’s stock, valued at $5,280,821.49. This trade represents a 4.44% 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. In the last ninety days, insiders sold 288,758 shares of company stock worth $1,828,598. 8.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of SOUN. SG Americas Securities LLC bought a new stake in SoundHound AI during the 1st quarter worth approximately $1,606,000. AXQ Capital LP boosted its position in shares of SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after purchasing an additional 203,345 shares during the period. Corient Private Wealth LP boosted its position in shares of SoundHound AI by 777.2% in the second quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock worth $1,144,000 after purchasing an additional 156,612 shares during the period. Themes Management Co LLC boosted its position in shares of SoundHound AI by 86.5% in the first quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock worth $1,315,000 after purchasing an additional 88,820 shares during the period. Finally, California State Teachers Retirement System increased its stake in shares of SoundHound AI by 25.0% in the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after purchasing an additional 87,998 shares in the last quarter. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

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.