SoundHound AI (NASDAQ:SOUN) Trading Down 3.8% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) fell 3.8% during mid-day trading on Wednesday . The company traded as low as $6.75 and last traded at $6.75. 25,440,203 shares were traded during trading, a decline of 7% from the average session volume of 27,492,367 shares. The stock had previously closed at $7.02.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SOUN. HC Wainwright reduced their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. Piper Sandler reiterated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, DA Davidson restated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Price Performance

The firm has a market cap of $2.99 billion, a price-to-earnings ratio of -14.68 and a beta of 2.56. The company has a fifty day moving average price of $7.91 and a two-hundred day moving average price of $8.95.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company’s quarterly revenue was up 51.7% compared to the same quarter last year. During the same quarter last year, the company earned ($0.06) EPS. On average, research analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, COO Michael Zagorsek sold 52,968 shares of the business’s stock in a transaction 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 sale, the chief operating officer directly owned 1,734,491 shares of the company’s stock, valued at $11,777,193.89. The trade was a 2.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider James Ming Hom sold 31,019 shares of the company’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the sale, the insider directly owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 307,973 shares of company stock valued at $2,091,110. 8.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently modified their holdings of the stock. EP Wealth Advisors LLC lifted its holdings in shares of SoundHound AI by 5.3% during the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after purchasing an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. lifted its holdings in shares of SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after purchasing an additional 830 shares during the last quarter. Insigneo Advisory Services LLC lifted its holdings in shares of SoundHound AI by 7.4% during the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock valued at $200,000 after purchasing an additional 858 shares during the last quarter. Clear Creek Financial Management LLC lifted its holdings in shares of SoundHound AI by 1.6% during the fourth quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company’s stock valued at $579,000 after purchasing an additional 941 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its holdings in shares of SoundHound AI by 15.5% during the third quarter. PNC Financial Services Group Inc. now owns 7,127 shares of the company’s stock valued at $115,000 after purchasing an additional 956 shares during the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

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.