SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.4% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) was down 4.4% during mid-day trading on Tuesday . The company traded as low as $8.81 and last traded at $8.8450. Approximately 33,880,114 shares changed hands during mid-day trading, an increase of 19% from the average daily volume of 28,356,812 shares. The stock had previously closed at $9.25.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. DA Davidson restated a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. HC Wainwright lowered their target price on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Piper Sandler reiterated a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Price Performance

The stock has a market cap of $3.83 billion, a price-to-earnings ratio of -18.82 and a beta of 2.56. The stock’s 50-day moving average is $7.72 and its 200 day moving average is $9.19.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. During the same period last year, the business posted ($0.06) earnings per share. The company’s quarterly revenue was up 51.7% on a year-over-year basis. Analysts anticipate that SoundHound AI, Inc. will post -0.43 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $845,422.90. Following the completion of the transaction, the chief executive officer directly owned 2,073,777 shares of the company’s stock, valued at approximately $14,080,945.83. This trade represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Michael Zagorsek sold 52,968 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $359,652.72. Following the transaction, the chief operating officer directly owned 1,734,491 shares of the company’s stock, valued at approximately $11,777,193.89. This trade represents a 2.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 307,973 shares of company stock valued at $2,091,110 in the last 90 days. 8.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SOUN. Hollencrest Capital Management increased its stake in shares of SoundHound AI by 197.5% during the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after purchasing an additional 2,400 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC boosted its holdings in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the last quarter. Danske Bank A S acquired a new position in shares of SoundHound AI in the 3rd quarter valued at $26,000. Finally, SHP Wealth Management acquired a new position in shares of SoundHound AI during the 4th quarter valued at $27,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

About SoundHound AI

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.