SoundHound AI (NASDAQ:SOUN) Stock Falls 2.4% - Here's Why

Key Points

• SoundHound AI shares fell 2.4% to $5.39 in Friday trading, with volume 57% below the stock’s average daily volume.
• Analyst views were mixed: Piper Sandler cut its price target to $6 and maintained a neutral rating, while DA Davidson lowered its target to $10 but retained a buy rating. MarketBeat reports an overall “Moderate Buy” consensus and an average price target of $12.75.
• The company’s latest quarterly results exceeded expectations, with adjusted losses of $0.02 per share versus the $0.13 consensus estimate and revenue of $61.9 million, up 45% year over year. However, SoundHound remains unprofitable, reporting a negative net margin of 67.45%.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares were down 2.4% during trading on Friday. The stock traded as low as $5.36 and last traded at $5.39. 11,791,945 shares traded hands during trading, a decline of 57% from the average daily volume of 27,252,738 shares. The stock had previously closed at $5.52.

Analysts Set New Price Targets

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

SoundHound AI Trading Down 2.4%

The stock has a market capitalization of $2.39 billion, a P/E ratio of -14.18 and a beta of 2.73. The company has a 50-day moving average price of $6.56 and a 200 day moving average price of $7.03.

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, beating the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The company had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same quarter in the previous year, the firm earned ($0.19) earnings per share. The firm's quarterly revenue was up 45.0% compared to the same quarter last year. As a group, research analysts expect that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.

Insider Activity

In other SoundHound AI news, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $450,145.29. Following the transaction, the chief operating officer directly owned 2,600,231 shares of the company's stock, valued at approximately $16,459,462.23. The trade was a 2.66% 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 the SEC website. 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 on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $869,045.70. Following the sale, 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 position. The disclosure for this sale is available in the SEC filing. 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 valued at $1,828,598 in the last ninety days. 8.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently added to or reduced their stakes in the business. SG Americas Securities LLC purchased a new position in SoundHound AI in the 1st quarter worth $1,606,000. AXQ Capital LP increased its holdings in shares of SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company's stock valued at $1,648,000 after purchasing an additional 203,345 shares during the period. Corient Private Wealth LP raised its stake in shares of SoundHound AI by 777.2% in the second quarter. Corient Private Wealth LP now owns 176,764 shares of the company's stock worth $1,144,000 after purchasing an additional 156,612 shares during the last quarter. Themes Management Co LLC lifted its holdings in shares of SoundHound AI by 86.5% during the first quarter. Themes Management Co LLC now owns 191,444 shares of the company's stock worth $1,315,000 after purchasing an additional 88,820 shares during the period. Finally, California State Teachers Retirement System lifted its holdings in shares of SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after purchasing an additional 87,998 shares during the period. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Company Profile

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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