SoundHound AI (NASDAQ:SOUN) Stock Falls 3.6% - Here's What Happened

Key Points

• SoundHound AI shares fell 3.6% to $5.83 on Monday, with trading volume down 47% from the average session.
• Analyst sentiment remains mixed: Piper Sandler cut its target to $6 and maintained a neutral rating, while DA Davidson lowered its target to $10 but retained a buy rating. MarketBeat’s consensus rating is “Moderate Buy,” with an average price target of $12.75.
• The company exceeded quarterly expectations, reporting a loss of $0.02 per share versus a projected loss of $0.13 and revenue of $61.9 million, up 45% year over year. However, SoundHound continues to post negative margins and return on equity.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 3.6% on Monday. The company traded as low as $5.83 and last traded at $5.83. 14,620,024 shares traded hands during trading, a decline of 47% from the average session volume of 27,772,795 shares. The stock had previously closed at $6.05.

Analyst Upgrades and Downgrades

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

SoundHound AI Stock Performance

The firm's 50-day moving average is $6.64 and its two-hundred day moving average is $7.13. The stock has a market cap of $2.59 billion, a P/E ratio of -15.34 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating analysts' consensus estimates of ($0.13) by $0.11. The firm had revenue of $61.90 million for 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 business's quarterly revenue was up 45.0% compared to the same quarter last year. During the same period last year, the company earned ($0.19) EPS. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.32 EPS for the current year.

Insider Transactions at SoundHound AI

In related news, SVP Majid Emami sold 38,730 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 $245,160.90. Following the transaction, the senior vice president owned 834,253 shares in the company, valued at $5,280,821.49. This trade represents a 4.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction dated 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 sale, the insider owned 1,105,555 shares of the company's stock, valued at approximately $6,998,163.15. The trade was a 3.38% decrease in their ownership of the stock. 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 worth $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 modified their holdings of the business. Hollencrest Capital Management lifted its holdings in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock valued at $25,000 after buying an additional 2,400 shares during the period. SHP Wealth Management acquired a new stake in SoundHound AI during the 4th quarter worth $27,000. Vermillion Wealth Management Inc. raised its position in shares of SoundHound AI by 5,164.8% during the 4th quarter. Vermillion Wealth Management Inc. now owns 4,791 shares of the company's stock valued at $48,000 after acquiring an additional 4,700 shares during the last quarter. Clarus Group Inc. bought a new stake in shares of SoundHound AI during the 1st quarter valued at $69,000. Finally, 180 Wealth Advisors LLC acquired a new position in shares of SoundHound AI in the 1st quarter valued at $69,000. Institutional investors and hedge funds own 19.28% of the company's stock.

About SoundHound AI

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company's offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.

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