SoundHound AI (NASDAQ:SOUN) Sets New 12-Month Low - Here's What Happened

Key Points

• SoundHound AI shares hit a new 52-week low, trading as low as $3.70 and last at $3.659, down from the prior close of $3.91.
• The company’s latest quarter beat estimates: adjusted loss was $0.05 per share versus expectations of $0.12, while revenue of $62.43 million topped estimates and rose 48.5% year over year.
• Analysts have a consensus Hold rating and an average price target of $9.50; DA Davidson cut its target from $10 to $5 while maintaining a Buy rating.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) hit a new 52-week low on Thursday. The stock traded as low as $3.70 and last traded at $3.6590, with a volume of 4,479,320 shares traded. The stock had previously closed at $3.91.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Oppenheimer reiterated a "market perform" rating on shares of SoundHound AI in a research report on Friday, November 6th. Weiss Ratings upgraded shares of SoundHound AI from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, October 15th. Wall Street Zen raised shares of SoundHound AI from a "strong sell" rating to a "sell" rating in a report on Saturday, October 24th. Yorkville Ives assumed coverage on shares of SoundHound AI in a research note on Monday, October 5th. They set an "in-line" rating and a $6.50 target price for the company. Finally, DA Davidson reduced their price target on shares of SoundHound AI from $10.00 to $5.00 and set a "buy" rating for the company in a research report on Friday, November 6th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $9.50.

SoundHound AI Trading Down 6.0%

The business has a fifty day moving average price of $5.31 and a two-hundred day moving average price of $6.93. The firm has a market capitalization of $1.63 billion, a PE ratio of -17.55 and a beta of 2.89.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.07. The firm had revenue of $62.43 million for the quarter, compared to analyst estimates of $61.71 million. SoundHound AI had a negative net margin of 33.17% and a negative return on equity of 13.35%. SoundHound AI's revenue was up 48.5% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.03) EPS. On average, equities analysts forecast that SoundHound AI, Inc. will post -0.39 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In other news, insider James Hom sold 38,730 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the transaction, the insider directly owned 1,105,555 shares in the company, valued at approximately $6,998,163.15. This represents a 3.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $869,045.70. Following the transaction, the chief executive officer directly owned 3,684,947 shares of the company's stock, valued at $23,325,714.51. The trade was a 3.59% 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 sold a total of 288,758 shares of company stock valued at $1,828,598 over the last 90 days. Insiders own 8.84% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in SOUN. Calamos Advisors LLC acquired a new stake in shares of SoundHound AI in the third quarter valued at $4,195,000. AXQ Capital LP lifted its stake in SoundHound AI by 395.6% during the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company's stock worth $1,648,000 after acquiring an additional 203,345 shares in the last quarter. Corient Private Wealth LP lifted its stake in SoundHound AI by 777.2% during the 2nd quarter. Corient Private Wealth LP now owns 176,764 shares of the company's stock worth $1,144,000 after acquiring an additional 156,612 shares in the last quarter. Kestra Private Wealth Services LLC purchased a new position in SoundHound AI during the 3rd quarter valued at about $671,000. Finally, Themes Management Co LLC boosted its holdings in SoundHound AI by 86.5% during the 1st quarter. Themes Management Co LLC now owns 191,444 shares of the company's stock valued at $1,315,000 after acquiring an additional 88,820 shares during the period. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI develops voice and conversational artificial intelligence technology for businesses. Its platform is designed to let people interact with products and services using natural speech, without relying solely on preset commands or menus. The company offers voice assistants and conversational tools for industries including automotive, restaurants, and consumer electronics. Its products include Houndify, a platform for building voice-enabled applications, and SoundHound Chat AI, which combines conversational voice technology with generative AI.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.