SoundHound AI (NASDAQ:SOUN) Shares Down 1.4% - Here's What Happened

Key Points

• SoundHound AI shares fell 1.4% on Wednesday, trading as low as $6.35 amid heavier-than-normal volume before finishing near $6.46.
• Recent analyst activity was mixed, but the overall view remains “Moderate Buy” with a consensus price target of $14.93. DA Davidson kept a $14 target, while other firms reiterated differing ratings including buy and sell.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a wider-than-expected loss of $0.06 per share. Insiders also sold shares in June, mainly to cover tax withholding obligations tied to equity awards.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares were down 1.4% on Wednesday . The company traded as low as $6.35 and last traded at $6.46. Approximately 36,772,992 shares changed hands during mid-day trading, an increase of 32% from the average daily volume of 27,846,660 shares. The stock had previously closed at $6.55.

Analyst Ratings Changes

Several brokerages have recently issued reports on SOUN. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, DA Davidson reaffirmed a "buy" rating and issued a $14.00 target price on shares of SoundHound AI in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Stock Performance

The firm has a market cap of $2.80 billion, a price-to-earnings ratio of -13.74 and a beta of 2.62. The stock has a 50-day moving average of $7.30 and a 200-day moving average of $8.00.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company's revenue was up 51.7% compared to the same quarter last year. During the same period last year, the company earned ($0.06) EPS. Sell-side analysts predict that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In related news, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the insider owned 743,521 shares of the company's stock, valued at approximately $5,546,666.66. The trade was a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $140,262.92. Following the sale, the chief technology officer owned 502,290 shares in the company, valued at $3,747,083.40. The trade was a 3.61% 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. Over the last 90 days, insiders sold 268,022 shares of company stock worth $1,999,444. Corporate insiders own 8.84% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SOUN. Handelsbanken Fonder AB raised its stake in shares of SoundHound AI by 17.4% during the 2nd quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company's stock worth $802,000 after purchasing an additional 18,400 shares in the last quarter. Focus Financial Network Inc. grew its stake in shares of SoundHound AI by 21.4% in the second quarter. Focus Financial Network Inc. now owns 48,229 shares of the company's stock valued at $312,000 after buying an additional 8,516 shares in the last quarter. IFC & Insurance Marketing Inc. grew its stake in shares of SoundHound AI by 17.9% in the second quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company's stock valued at $273,000 after buying an additional 6,427 shares in the last quarter. Hennion & Walsh Asset Management Inc. increased its holdings in SoundHound AI by 19.2% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company's stock worth $768,000 after buying an additional 19,133 shares during the last quarter. Finally, Empowered Funds LLC increased its holdings in SoundHound AI by 19.6% during the first quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock worth $95,000 after buying an additional 2,277 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

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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