SoundHound AI (NASDAQ:SOUN) Shares Down 1.3% - What's Next?

Key Points

• SoundHound AI shares fell 1.3% on Friday, trading between $8.16 and $8.41 on lighter-than-average volume.
• Recent earnings showed mixed results: the company posted a smaller-than-expected loss of $0.06 per share and revenue of $44.2 million, which topped estimates and rose 51.7% year over year.
• Analyst sentiment remains cautiously positive, with a consensus rating of “Moderate Buy” and an average price target of $14.93, though some firms have cut their targets recently.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 1.3% on Friday . The stock traded as low as $8.16 and last traded at $8.41. Approximately 18,384,345 shares changed hands during trading, a decline of 34% from the average daily volume of 27,785,088 shares. The stock had previously closed at $8.52.

Analyst Ratings Changes

SOUN has been the subject of several recent analyst reports. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a report on Monday, March 2nd. DA Davidson reaffirmed a "buy" rating and set a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. Piper Sandler reaffirmed a "neutral" rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. Finally, Zacks Research raised shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, SoundHound AI has a consensus rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Price Performance

The company's 50 day moving average price is $7.55 and its 200 day moving average price is $9.84. The firm has a market capitalization of $3.56 billion, a P/E ratio of -17.89 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. During the same period last year, the company earned ($0.06) earnings per share. SoundHound AI's revenue for the quarter was up 51.7% compared to the same quarter last year. On average, research analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 31,019 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the senior vice president directly owned 501,826 shares of the company's stock, valued at approximately $3,407,398.54. This trade represents a 5.82% 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, CEO Keyvan Mohajer sold 124,510 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the completion of the transaction, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. The trade was a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 307,973 shares of company stock valued at $2,091,110. 8.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently bought and sold shares of the business. Danske Bank A S bought a new position in SoundHound AI in the third quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. boosted its stake in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after acquiring an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC boosted its position in shares of SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after purchasing an additional 1,544 shares in the last quarter. SHP Wealth Management bought a new position in shares of SoundHound AI during the fourth quarter worth $27,000. Finally, Bogart Wealth LLC boosted its position in shares of SoundHound AI by 242.4% during the third quarter. Bogart Wealth LLC now owns 2,825 shares of the company's stock worth $45,000 after purchasing an additional 2,000 shares in the last quarter. 19.28% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.