SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.6% - Time to Sell?

Key Points

• SoundHound AI shares fell 1.6% to $5.63, trading below both their 50-day ($6.58) and 200-day ($7.04) moving averages, while volume was 47% below average.
• The company is expanding its voice-AI platform into televisions, IoT devices and additional Kia vehicles, and its latest quarter beat expectations with $61.9 million in revenue, up 45% year over year.
• Analyst sentiment remains a “Moderate Buy” with an average price target of $12.75, but risks include continuing losses, negative margins and recent insider sales made to cover tax obligations.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price was down 1.6% on Wednesday. The stock traded as low as $5.60 and last traded at $5.63. Approximately 14,499,866 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 27,377,172 shares. The stock had previously closed at $5.72.

Key SoundHound AI News

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: SoundHound is expanding its OASYS platform beyond automotive applications into televisions and other Internet of Things devices. The strategy could increase the number of connected endpoints using SoundHound’s conversational and “agentic” AI, potentially creating new transaction-related revenue opportunities. SoundHound Expands IoT Footprint: Can Agentic AI Reach More Devices?
• Positive Sentiment: A Kia launch is extending SoundHound’s technology to more vehicles and consumers, supporting the company’s effort to broaden its automotive distribution and establish additional commercial partnerships. SoundHound AI stock falls as Kia launch expands reach
• Positive Sentiment: Sell-side analysts collectively rate SOUN “Moderate Buy,” indicating that analysts generally see longer-term upside despite near-term execution and profitability risks. SoundHound AI Stock Now Rated Moderate Buy

Analyst Ratings Changes

A number of analysts have recently commented on the company. Wall Street Zen cut SoundHound AI from a "sell" rating to a "strong sell" rating in a research report on Saturday, September 26th. Piper Sandler dropped their price target on shares of SoundHound AI from $7.00 to $6.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 22nd. DA Davidson cut their price target on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a report on Friday, September 11th. One 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. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $12.75.

SoundHound AI Price Performance

The business has a fifty day simple moving average of $6.58 and a 200 day simple moving average of $7.04. The firm has a market cap of $2.50 billion, a price-to-earnings ratio of -14.82 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same period in the previous year, the company posted ($0.19) earnings per share. The business's revenue was up 45.0% on a year-over-year basis. On average, research analysts anticipate that SoundHound AI, Inc. will post -0.32 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other news, CEO Keyvan Mohajer sold 137,290 shares of the company's stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $869,045.70. Following the completion of the sale, the chief executive officer owned 3,684,947 shares of the company's stock, valued at $23,325,714.51. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 38,730 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the sale, the senior vice president owned 834,253 shares of the company's stock, valued at $5,280,821.49. This trade represents a 4.44% 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. In the last 90 days, insiders sold 288,758 shares of company stock worth $1,828,598. Company insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in SOUN. SG Americas Securities LLC purchased a new position in shares of SoundHound AI in the 1st quarter valued at about $1,606,000. AXQ Capital LP increased its stake in shares of SoundHound AI by 395.6% during the second quarter. AXQ Capital LP now owns 254,744 shares of the company's stock worth $1,648,000 after buying an additional 203,345 shares during the period. Corient Private Wealth LP raised its holdings in SoundHound AI by 777.2% in the second quarter. Corient Private Wealth LP now owns 176,764 shares of the company's stock valued at $1,144,000 after acquiring an additional 156,612 shares in the last quarter. Themes Management Co LLC raised its holdings in SoundHound AI by 86.5% in the first 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 in the last quarter. Finally, California State Teachers Retirement System lifted its stake in SoundHound AI by 25.0% in the first 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 during the last quarter. 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 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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