SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.3% - Here's What Happened

Key Points

• SoundHound AI shares fell 4.3% to $6.85 during mid-day trading, with about 26.3 million shares changing hands. The stock has a $3.04 billion market capitalization and trades below its 200-day moving average.
• Analyst sentiment remains generally positive but mixed: the stock has a “Moderate Buy” consensus rating and an average price target of $13.60, although Piper Sandler and DA Davidson recently lowered their targets.
• The company’s latest quarterly results exceeded expectations, with adjusted EPS of negative $0.02 versus estimates of negative $0.13 and revenue of $61.9 million, up 45% year over year. However, SoundHound remains unprofitable, with a negative net margin of 67.45%.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 4.3% during mid-day trading on Tuesday . The company traded as low as $6.76 and last traded at $6.85. Approximately 26,285,517 shares were traded during trading, a decline of 8% from the average daily volume of 28,612,813 shares. The stock had previously closed at $7.16.

Analyst Ratings Changes

Several research firms have weighed in on SOUN. 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. Weiss Ratings reissued a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. Piper Sandler reduced their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. Finally, DA Davidson dropped their price target on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $13.60.

SoundHound AI Price Performance

The company has a fifty day simple moving average of $6.71 and a two-hundred day simple moving average of $7.36. The company has a market capitalization of $3.04 billion, a P/E ratio of -18.03 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued 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. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The business had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same quarter in the prior year, the firm posted ($0.19) EPS. The firm's revenue for the quarter was up 45.0% on a year-over-year basis. Equities analysts anticipate that SoundHound AI, Inc. will post -0.33 earnings per share for the current year.

Insiders Place Their Bets

In other SoundHound AI news, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction that occurred 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 directly owned 472,983 shares of the company's stock, valued at $3,528,453.18. The trade was a 5.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $484,855.24. Following the transaction, the chief operating officer directly owned 1,669,497 shares of the company's stock, valued at $12,454,447.62. This represents a 3.75% 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 a total of 269,365 shares of company stock valued at $2,009,047 in the last ninety days. Company insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of the stock. Morgan Stanley boosted its stake in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock valued at $89,606,000 after buying an additional 2,917,280 shares in the last quarter. UBS Group AG boosted its stake in shares of SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after purchasing an additional 2,676,707 shares in the last quarter. California State Teachers Retirement System boosted its position in SoundHound AI by 558.0% in the second quarter. California State Teachers Retirement System now owns 2,895,228 shares of the company's stock valued at $18,732,000 after buying an additional 2,455,205 shares in the last quarter. Voloridge Investment Management LLC grew its stake in SoundHound AI by 2,259.7% during the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company's stock worth $21,929,000 after buying an additional 2,106,298 shares during the last quarter. Finally, Vanguard Group Inc. increased its holdings in shares of SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after buying an additional 1,909,868 shares in the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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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