SoundHound AI (NASDAQ:SOUN) Hits New 52-Week Low - Here's What Happened

Key Points

• SoundHound AI shares hit a new 52-week low of $5.65, below the 50-day and 200-day moving averages, amid a market capitalization of approximately $2.51 billion.
• Analyst views are mixed: recent firms lowered price targets to $6–$10, but the overall consensus remains a “Moderate Buy” with a $12.75 price target.
• The company exceeded quarterly expectations, reporting a narrower-than-expected loss of $0.02 per share and revenue of $61.9 million, up 45% year over year, though it remains unprofitable with a negative net margin.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares hit a new 52-week low on Wednesday. The company traded as low as $5.65 and last traded at $5.6470, with a volume of 808867 shares traded. The stock had previously closed at $5.72.

Analysts Set New Price Targets

A number of analysts have commented on SOUN shares. DA Davidson cut their price target on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Wall Street Zen lowered shares of SoundHound AI from a "sell" rating to a "strong sell" rating in a research note on Saturday, September 26th. Piper Sandler dropped their target price on shares of SoundHound AI from $7.00 to $6.00 and set a "neutral" rating on the stock in a report on Tuesday, September 22nd. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of SoundHound AI in a research note on Friday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $12.75.

SoundHound AI Price Performance

The stock has a market capitalization of $2.51 billion, a P/E ratio of -14.90 and a beta of 2.73. The stock's 50-day simple moving average is $6.58 and its 200 day simple moving average is $7.04.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.13) by $0.11. The company had revenue of $61.90 million during the quarter, compared to analysts' expectations of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. SoundHound AI's quarterly revenue was up 45.0% compared to the same quarter last year. During the same quarter last year, the company posted ($0.19) EPS. As a group, analysts expect that SoundHound AI, Inc. will post -0.32 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, CEO Keyvan Mohajer sold 137,290 shares of the company's stock in a transaction that occurred on 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. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the transaction, the chief operating officer owned 2,600,231 shares in the company, valued at approximately $16,459,462.23. This trade represents a 2.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 288,758 shares of company stock worth $1,828,598. Insiders own 8.84% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Hilltop Holdings Inc. raised its holdings in SoundHound AI by 3.5% during the 1st quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company's stock valued at $353,000 after acquiring an additional 1,753 shares during the period. Sterling Investment Counsel LLC grew its position in shares of SoundHound AI by 10.5% in the first quarter. Sterling Investment Counsel LLC now owns 22,787 shares of the company's stock valued at $157,000 after purchasing an additional 2,173 shares in the last quarter. Empowered Funds LLC grew its position in shares of SoundHound AI by 19.6% in the first 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 in the last quarter. Hollencrest Capital Management raised 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 valued at $25,000 after purchasing an additional 2,400 shares during the period. Finally, Keynote Financial Services LLC raised its stake in shares of SoundHound AI by 6.9% during the 1st quarter. Keynote Financial Services LLC now owns 37,321 shares of the company's stock valued at $256,000 after purchasing an additional 2,405 shares during the period. 19.28% of the stock is owned by institutional investors.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company's offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.

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