SoundHound AI (NASDAQ:SOUN) Sets New 12-Month Low - Should You Sell?

Key Points

• SoundHound AI shares hit a new 52-week low, falling 4.7% to about $4.02 during Thursday’s trading, below their 50-day and 200-day moving averages.
• Despite the share-price weakness, analysts’ consensus rating is Moderate Buy, with an average price target of $11.50; recent analyst actions included price-target cuts and neutral ratings.
• The company beat quarterly EPS and revenue estimates, with revenue up 45% year over year to $61.9 million, but it remained unprofitable, reporting a 67.45% negative net margin.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $4.03 and last traded at $4.0150, with a volume of 5,079,951 shares trading hands. The stock had previously closed at $4.32.

Wall Street Analyst Weigh In

SOUN has been the subject of a number of recent research reports. Weiss Ratings upgraded SoundHound AI from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, October 15th. Piper Sandler lowered their price target 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. Yorkville Ives began coverage on shares of SoundHound AI in a research note on Monday, October 5th. They set an "in-line" rating and a $6.50 price objective for the company. Wall Street Zen upgraded shares of SoundHound AI from a "strong sell" rating to a "sell" rating in a research report on Saturday, October 24th. Finally, DA Davidson cut their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, SoundHound AI currently has a consensus rating of "Moderate Buy" and an average price target of $11.50.

SoundHound AI Trading Down 4.7%

The company has a market cap of $1.83 billion, a PE ratio of -10.83 and a beta of 2.89. The company's 50 day moving average is $5.62 and its 200 day moving average is $7.10.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.13) by $0.11. The company had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. SoundHound AI's quarterly revenue was up 45.0% on a year-over-year basis. During the same period last year, the business posted ($0.19) EPS. Analysts expect that SoundHound AI, Inc. will post -0.39 EPS for the current year.

Insider Activity at SoundHound AI

In related news, SVP Majid Emami sold 38,730 shares of the company's stock in a transaction 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 transaction, the senior vice president directly owned 834,253 shares of the company's stock, valued at $5,280,821.49. This represents a 4.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 firm's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $869,045.70. Following the completion of the transaction, the chief executive officer owned 3,684,947 shares of the company's stock, valued at approximately $23,325,714.51. The trade was a 3.59% decrease in their ownership of the stock. 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 288,758 shares of company stock valued at $1,828,598 over the last three months. 8.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in SOUN. Swiss National Bank increased its holdings in SoundHound AI by 3.7% in the first quarter. Swiss National Bank now owns 767,100 shares of the company's stock valued at $5,270,000 after buying an additional 27,300 shares in the last quarter. Calamos Advisors LLC acquired a new position in shares of SoundHound AI in the third quarter worth about $4,195,000. California State Teachers Retirement System boosted its stake in shares of SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after acquiring an additional 87,998 shares in the last quarter. AXQ Capital LP boosted its stake in shares of 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. Finally, Themes Management Co LLC grew its position in shares of 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. Hedge funds and other institutional investors own 19.28% of the company's stock.

SoundHound AI Company Profile

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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