SoundHound AI (NASDAQ:SOUN) Trading Down 1.5% - Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded down 1.5% during mid-day trading on Wednesday . The company traded as low as $12.43 and last traded at $12.51. 34,436,540 shares changed hands during trading, a decline of 15% from the average session volume of 40,540,959 shares. The stock had previously closed at $12.71.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. DA Davidson cut their price target on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Wedbush cut their target price on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating on the stock in a research note on Friday, May 9th. Piper Sandler initiated coverage on shares of SoundHound AI in a research report on Tuesday, May 27th. They set an "overweight" rating and a $12.00 price target for the company. Finally, HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research note on Monday, May 12th. Four analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat, SoundHound AI currently has an average rating of "Moderate Buy" and an average target price of $10.50.

SoundHound AI Stock Down 5.9%

The firm has a market cap of $4.65 billion, a price-to-earnings ratio of -21.04 and a beta of 2.59. The company has a 50 day moving average of $10.26 and a 200 day moving average of $11.38.

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

Insider Buying and Selling

In related news, CTO Timothy Stonehocker sold 2,981 shares of SoundHound AI stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $9.68, for a total value of $28,856.08. Following the completion of the transaction, the chief technology officer directly owned 716,866 shares in the company, valued at approximately $6,939,262.88. This trade represents a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Nitesh Sharan sold 111,111 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 value of $1,039,998.96. Following the transaction, the chief financial officer directly owned 1,442,900 shares in the company, 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 three months, insiders have sold 961,289 shares of company stock worth $9,247,847. 9.17% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently added to or reduced their stakes in the business. Yarbrough Capital LLC acquired a new position in shares of SoundHound AI in the 1st quarter valued at about $1,258,000. Deutsche Bank AG boosted its stake in SoundHound AI by 64.2% in the fourth quarter. Deutsche Bank AG now owns 264,559 shares of the company's stock valued at $5,249,000 after acquiring an additional 103,450 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in shares of SoundHound AI by 5.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,725,693 shares of the company's stock valued at $54,078,000 after purchasing an additional 143,487 shares during the last quarter. Rockefeller Capital Management L.P. acquired a new stake in shares of SoundHound AI during the 4th quarter worth approximately $41,595,000. Finally, Bulltick Wealth Management LLC bought a new stake in shares of SoundHound AI in the 4th quarter worth approximately $2,611,000. Institutional investors and hedge funds own 19.28% of the company's stock.

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.