SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.9% - Here's What Happened

Key Points

• SoundHound AI shares fell 4.9% to $6.15 in mid-day trading, with volume about 35% below the stock’s average daily level.
• Analyst sentiment remains mixed: DA Davidson and Piper Sandler cut their price targets to $10 and $7, respectively, while the consensus rating is still “Moderate Buy” with a $13 average target.
• The company exceeded quarterly expectations, reporting an adjusted loss of $0.02 per share versus an expected $0.13 loss and revenue of $61.9 million, up 45% year over year; however, it continues to post negative margins and return on equity.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price dropped 4.9% on Tuesday . The stock traded as low as $6.15 and last traded at $6.15. Approximately 18,453,212 shares changed hands during mid-day trading, a decline of 35% from the average daily volume of 28,357,842 shares. The stock had previously closed at $6.47.

Analyst Ratings Changes

Several research analysts have commented on the company. DA Davidson cut their price target on SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Piper Sandler lowered their target price on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a report on Friday. Finally, Wall Street Zen upgraded shares of SoundHound AI from a "strong sell" rating to a "sell" rating in a research report on Sunday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $13.00.

SoundHound AI Price Performance

The stock's 50-day moving average is $6.73 and its 200 day moving average is $7.28. The stock has a market cap of $2.73 billion, a price-to-earnings ratio of -16.18 and a beta of 2.66.

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 company had revenue of $61.90 million for the quarter, compared to analysts' expectations of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The firm's quarterly revenue was up 45.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.19) EPS. Analysts anticipate that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Geode Capital Management LLC boosted its position in SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock worth $91,543,000 after purchasing an additional 273,097 shares in the last quarter. Swiss National Bank increased its position in shares of SoundHound AI by 3.7% in the first quarter. Swiss National Bank now owns 767,100 shares of the company's stock valued at $5,270,000 after buying an additional 27,300 shares in the last quarter. California State Teachers Retirement System increased its position in shares of SoundHound AI by 25.0% in the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock valued at $3,023,000 after buying an additional 87,998 shares in the last quarter. Virtu Financial LLC raised its stake in shares of SoundHound AI by 43.9% during the 4th quarter. Virtu Financial LLC now owns 219,773 shares of the company's stock worth $2,191,000 after buying an additional 67,088 shares during the last quarter. Finally, Rockefeller Capital Management L.P. raised its stake in shares of SoundHound AI by 3.5% during the 4th quarter. Rockefeller Capital Management L.P. now owns 179,327 shares of the company's stock worth $1,788,000 after buying an additional 6,096 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Company Profile

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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