SoundHound AI (NASDAQ:SOUN) Trading Down 1% - Time to Sell?

Key Points

• SoundHound AI's stock price declined by 1% to $13.28, with trading volume down 58% from its average daily volume.
• HC Wainwright and Wall Street Zen have revised their ratings on SoundHound AI, with Wainwright lowering its price target to $18.00 while Wall Street Zen downgraded its rating to "sell".
• The company reported a negative EPS of ($0.19) for the latest quarter, missing estimates, but achieved significant revenue growth of 216.3% year-over-year.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) traded down 1% during mid-day trading on Wednesday . The company traded as low as $13.25 and last traded at $13.28. 17,718,352 shares changed hands during trading, a decline of 58% from the average session volume of 42,069,813 shares. The stock had previously closed at $13.42.

Analysts Set New Price Targets

Several equities research analysts have recently commented on SOUN shares. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a report on Monday, July 14th. Northland Capmk raised SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 8th. LADENBURG THALM/SH SH raised SoundHound AI from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $9.00 to $16.00 in a research report on Monday, August 11th. Wedbush boosted their price objective on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. Finally, Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $13.36.

SoundHound AI Stock Up 7.3%

The firm's fifty day moving average price is $12.36 and its 200 day moving average price is $10.44. The stock has a market cap of $5.81 billion, a PE ratio of -22.63 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The company had revenue of $42.68 million for the quarter, compared to analysts' expectations of $32.88 million. During the same period in the previous year, the business posted ($0.11) earnings per share. The business's revenue was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In other news, insider James Ming Hom sold 79,530 shares of the stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $744,400.80. Following the completion of the transaction, the insider directly owned 637,560 shares in the company, valued at approximately $5,967,561.60. This represents a 11.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Michael Zagorsek sold 117,180 shares of the firm's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,096,804.80. Following the completion of the transaction, the chief operating officer directly owned 1,346,455 shares of the company's stock, valued at approximately $12,602,818.80. This trade represents a 8.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 913,317 shares of company stock valued at $8,679,813 in the last 90 days. 9.17% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently made changes to their positions in SOUN. Virtu Financial LLC purchased a new stake in shares of SoundHound AI during the 1st quarter valued at about $2,395,000. Northern Trust Corp lifted its stake in shares of SoundHound AI by 2.5% in the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after purchasing an additional 72,766 shares during the last quarter. Carnegie Investment Counsel boosted its holdings in shares of SoundHound AI by 8.9% in the 1st quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock worth $8,131,000 after purchasing an additional 87,810 shares during the period. Liontrust Investment Partners LLP bought a new position in shares of SoundHound AI during the 1st quarter valued at approximately $1,639,000. Finally, Thoroughbred Financial Services LLC raised its holdings in SoundHound AI by 38.4% during the 1st quarter. Thoroughbred Financial Services LLC now owns 113,475 shares of the company's stock valued at $921,000 after buying an additional 31,500 shares during the period. 19.28% of the stock is owned by hedge funds and other institutional investors.

About SoundHound AI

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.