SoundHound AI (NASDAQ:SOUN) Stock Price Down 1% - Should You Sell?

Key Points

• SoundHound AI shares fell 1% to $6.78, with the stock trading below its 200-day moving average of $7.35. The company has a $3.01 billion market capitalization and remains unprofitable.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $13.60, despite recent target reductions from DA Davidson and Piper Sandler.
• SoundHound reported better-than-expected quarterly results, including a loss of $0.02 per share versus the $0.13 estimate and revenue of $61.9 million, up 45% year over year. However, negative margins and projected full-year losses remain concerns.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price was down 1% during trading on Wednesday . The stock traded as low as $6.72 and last traded at $6.78. Approximately 23,744,303 shares were traded during mid-day trading, a decline of 17% from the average daily volume of 28,584,553 shares. The stock had previously closed at $6.85.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on SOUN shares. DA Davidson lowered their target price on SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Piper Sandler decreased their target price on SoundHound AI from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Finally, Wall Street Zen upgraded shares of SoundHound AI from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 15th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $13.60.

SoundHound AI Price Performance

The firm has a market cap of $3.01 billion, a P/E ratio of -17.84 and a beta of 2.66. The stock's 50-day moving average price is $6.72 and its 200 day moving average price is $7.35.

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, topping the consensus estimate of ($0.13) by $0.11. The business 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%.SoundHound AI's revenue was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.19) earnings per share. As a group, analysts forecast that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $140,262.92. Following the transaction, the chief technology officer directly owned 502,290 shares of the company's stock, valued at $3,747,083.40. This represents a 3.61% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the senior vice president owned 472,983 shares in the company, valued at approximately $3,528,453.18. This trade represents a 5.75% 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 269,365 shares of company stock worth $2,009,047 over the last ninety days. Company insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently bought and sold shares of the company. Hollencrest Capital Management increased its position in shares of SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock worth $25,000 after buying an additional 2,400 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC grew its holdings in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock valued at $26,000 after purchasing an additional 1,544 shares during the period. Danske Bank A S purchased a new position in shares of SoundHound AI in the third quarter worth about $26,000. Finally, SHP Wealth Management bought a new stake in SoundHound AI during the 4th quarter valued at $27,000. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

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