SoundHound AI, Inc. $SOUN Stock Position Cut by First Trust Advisors LP

Key Points

• First Trust Advisors LP reduced its SoundHound AI stake by 20.8% in the first quarter, selling 293,790 shares and retaining 1.12 million shares valued at approximately $7.7 million. Institutional investors collectively own 19.28% of the company.
• Analyst sentiment remains generally positive, with SoundHound AI receiving a “Moderate Buy” consensus rating and an average price target of $14.93, despite one sell rating.
• SoundHound AI reported quarterly revenue of $44.2 million, up 51.7% year over year and above estimates, but missed EPS expectations and continued to post significant net losses. The stock opened at $6.13, near its 12-month low of $5.65.

First Trust Advisors LP decreased its stake in shares of SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) by 20.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,115,484 shares of the company's stock after selling 293,790 shares during the period. First Trust Advisors LP owned approximately 0.26% of SoundHound AI worth $7,663,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in SOUN. Danske Bank A S bought a new position in shares of SoundHound AI in the third quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC raised its holdings in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after purchasing an additional 1,544 shares in the last quarter. SHP Wealth Management acquired a new stake in SoundHound AI in the fourth quarter worth approximately $27,000. Finally, Parallel Advisors LLC lifted its position in SoundHound AI by 42.8% in the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after purchasing an additional 960 shares during the period. 19.28% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several brokerages have recently issued reports on SOUN. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. Finally, DA Davidson reaffirmed a "buy" rating and set a $14.00 target price on shares of SoundHound AI in a research note on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, SoundHound AI has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Price Performance

SOUN stock opened at $6.13 on Friday. SoundHound AI, Inc. has a 12 month low of $5.65 and a 12 month high of $22.17. The firm has a market cap of $2.65 billion, a PE ratio of -13.04 and a beta of 2.62. The firm has a 50 day simple moving average of $6.95 and a 200 day simple moving average of $7.76.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The business had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company's quarterly revenue was up 51.7% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.06) EPS. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Buying and Selling at SoundHound AI

In other news, insider James Ming Hom sold 28,843 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the insider directly owned 743,521 shares of the company's stock, valued at $5,546,666.66. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 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 the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares of the company's stock, valued at $14,526,388.02. This trade represents a 6.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by insiders.

SoundHound AI 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.

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