SoundHound AI (NASDAQ:SOUN) Sets New 1-Year Low - Here's What Happened

Key Points

• SoundHound AI shares hit a new 52-week low, falling 7.8% to about $4.97 during midday trading on heavy volume.
• Analyst sentiment remains mixed: the stock carries a “Moderate Buy” consensus rating with a $12.75 average price target, though several analysts recently lowered targets and issued sell or neutral ratings.
• The company exceeded quarterly expectations, reporting $61.9 million in revenue—up 45% year over year—and a $0.02 adjusted loss per share versus the expected $0.13 loss, but it continues to post substantial negative margins.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $4.96 and last traded at $4.97, with a volume of 20,345,551 shares traded. The stock had previously closed at $5.39.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Wall Street Zen downgraded SoundHound AI from a "sell" rating to a "strong sell" rating in a research note on Saturday, September 26th. DA Davidson decreased their price target on SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Piper Sandler cut their price objective on SoundHound AI from $7.00 to $6.00 and set a "neutral" rating for the company in a research report on Tuesday, September 22nd. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of SoundHound AI in a report on Friday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $12.75.

SoundHound AI Stock Down 7.8%

The company has a market capitalization of $2.21 billion, a PE ratio of -13.08 and a beta of 2.73. The stock's fifty day simple moving average is $6.53 and its 200-day simple moving average is $7.01.

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

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the transaction, the insider owned 1,105,555 shares in the company, valued at approximately $6,998,163.15. The trade was a 3.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of the company's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $869,045.70. Following the completion of the sale, the chief executive officer directly owned 3,684,947 shares in the company, valued at $23,325,714.51. This trade represents a 3.59% decrease in their position. 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 288,758 shares of company stock valued at $1,828,598 in the last quarter. Insiders own 8.84% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. NewEdge Advisors LLC lifted its stake in SoundHound AI by 38.1% in the 2nd quarter. NewEdge Advisors LLC now owns 132,072 shares of the company's stock valued at $855,000 after buying an additional 36,415 shares in the last quarter. IFP Advisors Inc increased its position in SoundHound AI by 10.7% during the second quarter. IFP Advisors Inc now owns 32,748 shares of the company's stock worth $212,000 after buying an additional 3,163 shares in the last quarter. Allworth Financial LP increased its position in SoundHound AI by 12.7% during the second quarter. Allworth Financial LP now owns 22,539 shares of the company's stock worth $146,000 after buying an additional 2,537 shares in the last quarter. Waverly Advisors LLC raised its holdings in shares of SoundHound AI by 6.9% in the second quarter. Waverly Advisors LLC now owns 64,132 shares of the company's stock worth $415,000 after acquiring an additional 4,138 shares during the last quarter. Finally, Nykredit A S acquired a new position in shares of SoundHound AI in the second quarter worth $165,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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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