SoundHound AI (NASDAQ:SOUN) Shares Down 1.2% - Here's Why

Key Points

• SoundHound AI's stock price fell 1.2%, closing at $11.82, with a significant decrease in trading volume, down 62% from the average.
• Recent price target adjustments by analysts have lowered expectations for SoundHound AI, with DA Davidson revising their target from $13.00 to $10.00.
• The company's latest earnings report showed a revenue increase of 151.2% year-over-year, hitting $29.13 million, despite missing analyst expectations.
• Insiders sold a notable amount of shares recently, with over 961,000 shares traded in the past 90 days, indicating some uncertainty from company executives.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price fell 1.2% on Friday . The company traded as low as $11.51 and last traded at $11.82. 15,032,357 shares traded hands during trading, a decline of 62% from the average session volume of 39,728,566 shares. The stock had previously closed at $11.96.

Analysts Set New Price Targets

A number of research firms have weighed in on SOUN. DA Davidson cut their target price on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a research report on Monday, April 14th. HC Wainwright cut their target price on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Wedbush cut their target price on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Finally, Piper Sandler reissued a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research report on Monday, July 14th. Five equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $10.50.

SoundHound AI Stock Performance

The business's 50-day moving average price is $10.58 and its 200 day moving average price is $10.80. The company has a market cap of $4.72 billion, a P/E ratio of -21.41 and a beta of 2.59.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.03. SoundHound AI had a negative net margin of 184.34% and a negative return on equity of 68.55%. The business had revenue of $29.13 million during the quarter, compared to analysts' expectations of $30.38 million. During the same quarter in the previous year, the company earned ($0.07) EPS. The business's revenue was up 151.2% on a year-over-year basis. Equities research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In related news, CTO Timothy Stonehocker sold 2,981 shares of the stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $9.68, for a total transaction of $28,856.08. Following the transaction, the chief technology officer directly owned 716,866 shares of the company's stock, valued at $6,939,262.88. This represents a 0.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Nitesh Sharan sold 111,111 shares of the stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the completion of the sale, the chief financial officer owned 1,442,900 shares of the company's stock, valued at approximately $13,505,544. This represents a 7.15% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 961,289 shares of company stock worth $9,247,847. Corporate insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently modified their holdings of the company. Xponance Inc. raised its stake in SoundHound AI by 14.6% in the fourth quarter. Xponance Inc. now owns 22,133 shares of the company's stock valued at $439,000 after purchasing an additional 2,827 shares in the last quarter. Sei Investments Co. lifted its holdings in shares of SoundHound AI by 62.7% in the 4th quarter. Sei Investments Co. now owns 48,196 shares of the company's stock worth $956,000 after acquiring an additional 18,566 shares during the last quarter. KLP Kapitalforvaltning AS bought a new stake in shares of SoundHound AI in the 4th quarter worth approximately $1,309,000. LPL Financial LLC lifted its holdings in shares of SoundHound AI by 19.1% in the 4th quarter. LPL Financial LLC now owns 1,252,972 shares of the company's stock worth $24,859,000 after acquiring an additional 200,763 shares during the last quarter. Finally, Vanguard Group Inc. lifted its holdings in shares of SoundHound AI by 35.6% in the 4th quarter. Vanguard Group Inc. now owns 32,031,662 shares of the company's stock worth $635,508,000 after acquiring an additional 8,402,881 shares during the last quarter. 19.28% of the stock is currently owned by 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.

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