SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.5% - Should You Sell?

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

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of analyst reports. Piper Sandler initiated coverage on SoundHound AI in a research report on Tuesday, May 27th. They set an "overweight" rating and a $12.00 price target for the company. Wedbush reduced their price target on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. DA Davidson reduced their price target on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a research report on Monday, April 14th. Finally, HC Wainwright reduced their price target on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Four analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $10.50.

SoundHound AI Stock Down 5.9%

The company has a fifty day moving average price of $10.26 and a two-hundred day moving average price of $11.38.

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

Insider Activity

In other news, CFO Nitesh Sharan sold 111,111 shares of SoundHound AI stock in a transaction that occurred on Friday, June 20th. The shares were 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 of the company's stock, valued at $13,505,544. This trade represents a 7.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider James Ming Hom sold 79,530 shares of the company's stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $744,400.80. Following the completion of the sale, the insider owned 637,560 shares of the company's stock, valued at approximately $5,967,561.60. This trade represents a 11.09% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 961,289 shares of company stock worth $9,247,847. 9.17% of the stock is owned by company insiders.

Institutional Trading of SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in SoundHound AI by 9.5% in the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock worth $284,687,000 after acquiring an additional 3,028,281 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of SoundHound AI by 4.4% during the fourth quarter. Geode Capital Management LLC now owns 7,509,496 shares of the company's stock worth $149,024,000 after acquiring an additional 315,897 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of SoundHound AI by 84.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock worth $40,390,000 after acquiring an additional 2,274,105 shares in the last quarter. Northern Trust Corp boosted its position in SoundHound AI by 2.5% during the first 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. Finally, Charles Schwab Investment Management Inc. grew its stake in SoundHound AI by 4.5% in the first quarter. Charles Schwab Investment Management Inc. now owns 2,847,261 shares of the company's stock valued at $23,120,000 after purchasing an additional 121,568 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Company Profile

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.