SoundHound AI (NASDAQ:SOUN) Sets New 1-Year Low - Should You Sell?

Key Points

• SoundHound AI shares fell to a new 52-week low of $4.15, below their 50-day and 200-day moving averages of $5.85 and $7.24, respectively.
• Analyst opinions remain mixed but lean positive, with a consensus rating of “Moderate Buy” and an average price target of $11.50, despite several recent target cuts.
• The company beat quarterly revenue and EPS estimates, reporting 45% year-over-year revenue growth, but remains unprofitable with a negative net margin; insiders have also sold $1.83 million worth of shares over the past 90 days, primarily for tax withholding.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price reached a new 52-week low during trading on Friday. The stock traded as low as $4.15 and last traded at $4.2280, with a volume of 2,056,684 shares. The stock had previously closed at $4.36.

Analysts Set New Price Targets

Several research analysts have recently weighed in on SOUN shares. Weiss Ratings upgraded shares of SoundHound AI from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Thursday, October 15th. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Yorkville Ives assumed coverage on shares of SoundHound AI in a research note on Monday, October 5th. They issued an "in-line" rating and a $6.50 price objective for the company. Piper Sandler lowered 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, Wall Street Zen upgraded SoundHound AI from a "strong sell" rating to a "sell" rating in a research note on Saturday, October 24th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $11.50.

SoundHound AI Stock Performance

The firm has a 50 day simple moving average of $5.85 and a two-hundred day simple moving average of $7.24. The stock has a market cap of $1.85 billion, a P/E ratio of -11.04 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its 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 analyst estimates of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The company's revenue for the quarter was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.19) earnings per share. As a group, equities research analysts predict that SoundHound AI, Inc. will post -0.39 EPS for the current year.

Insider Buying and Selling

In related news, COO Michael Zagorsek sold 71,113 shares of the stock in a transaction 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 completion of the sale, the chief operating officer directly owned 2,600,231 shares in the company, valued at $16,459,462.23. This represents a 2.66% decrease in their ownership of the stock. 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, SVP Majid Emami sold 38,730 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 $245,160.90. Following the completion of the transaction, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. The trade was a 4.44% 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. Insiders have sold 288,758 shares of company stock worth $1,828,598 over the last 90 days. 8.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Hollencrest Capital Management lifted its position in SoundHound AI by 197.5% during the first 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. Financial Management Professionals Inc. purchased a new position in shares of SoundHound AI in the third quarter worth $30,000. Krilogy Financial LLC bought a new stake in shares of SoundHound AI in the third quarter worth about $62,000. Element Pointe Advisors LLC purchased a new position in shares of SoundHound AI in the third quarter valued at $66,000. Finally, 180 Wealth Advisors LLC bought a new stake in SoundHound AI during the first quarter worth approximately $69,000. Institutional investors own 19.28% of the company's stock.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company's offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.

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