SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.3% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) fell 4.3% on Monday. The stock traded as low as $4.20 and last traded at $4.24. Approximately 13,577,111 shares changed hands during trading, a decline of 49% from the average session volume of 26,575,043 shares. The stock had previously closed at $4.43.

Analyst Upgrades and Downgrades

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

SoundHound AI Price Performance

The business’s 50 day simple moving average is $6.06 and its 200-day simple moving average is $6.89. The stock has a market capitalization of $1.88 billion, a P/E ratio of -11.16 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.11. The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The company’s quarterly revenue was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.19) earnings per share. Research analysts anticipate that SoundHound AI, Inc. will post -0.40 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider James Hom sold 38,730 shares of the company’s stock in a transaction 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 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of the stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $869,045.70. Following the transaction, the chief executive officer owned 3,684,947 shares of the company’s stock, valued at approximately $23,325,714.51. The trade was a 3.59% 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 288,758 shares of company stock valued at $1,828,598 over the last ninety days. 8.84% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently modified their holdings of the business. Financial Management Professionals Inc. acquired a new stake in shares of SoundHound AI in the 3rd quarter valued at approximately $30,000. Trueblood Wealth Management LLC increased its holdings in SoundHound AI by 43.4% during the third quarter. Trueblood Wealth Management LLC now owns 59,082 shares of the company’s stock worth $356,000 after buying an additional 17,882 shares during the last quarter. Sterling Capital Management LLC raised its position in SoundHound AI by 883.1% during the third quarter. Sterling Capital Management LLC now owns 13,812 shares of the company’s stock worth $83,000 after acquiring an additional 12,407 shares in the last quarter. SBI Securities Co. Ltd. raised its position in SoundHound AI by 14.5% during the third quarter. SBI Securities Co. Ltd. now owns 108,959 shares of the company’s stock worth $656,000 after acquiring an additional 13,815 shares in the last quarter. Finally, Element Pointe Advisors LLC acquired a new stake in SoundHound AI in the third quarter valued at $66,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.