SoundHound AI (NASDAQ:SOUN) Trading Down 3.4% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares dropped 3.4% during mid-day trading on Monday . The company traded as low as $6.86 and last traded at $6.88. 23,546,710 shares traded hands during trading, a decline of 14% from the average session volume of 27,427,508 shares. The stock had previously closed at $7.12.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on SOUN. Piper Sandler reaffirmed a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. DA Davidson reaffirmed a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, HC Wainwright decreased their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Performance

The company’s fifty day moving average price is $7.95 and its 200-day moving average price is $8.75. The stock has a market cap of $2.98 billion, a P/E ratio of -14.64 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The business had revenue of $44.20 million for the quarter, compared to the consensus estimate 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 period in the prior year, the company posted ($0.06) EPS. Analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 64,994 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $484,855.24. Following the transaction, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at approximately $12,454,447.62. This trade represents a 3.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $943,988.40. Following the transaction, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. The trade was a 6.10% 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 sold a total of 268,022 shares of company stock valued at $1,999,444 over the last three months. 8.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Empowered Funds LLC raised its position in shares of SoundHound AI by 19.6% in the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after purchasing an additional 2,277 shares during the last quarter. NewEdge Advisors LLC grew its position in SoundHound AI by 62.1% during the 1st quarter. NewEdge Advisors LLC now owns 95,657 shares of the company’s stock worth $657,000 after purchasing an additional 36,644 shares during the last quarter. Verus Capital Partners LLC purchased a new stake in SoundHound AI during the 1st quarter worth approximately $71,000. Amundi increased its stake in SoundHound AI by 112.4% during the 1st quarter. Amundi now owns 24,046 shares of the company’s stock valued at $165,000 after purchasing an additional 12,725 shares in the last quarter. Finally, California State Teachers Retirement System increased its stake in SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after purchasing an additional 87,998 shares in the last quarter. 19.28% of the stock is currently 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.