SoundHound AI (NASDAQ:SOUN) Shares Down 1.8% - What's Next?

Key Points

• SoundHound AI shares fell 1.8% on Thursday, trading between $6.37 and $6.68 on volume above average. The stock remains well below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but still leans positive, with a consensus rating of “Moderate Buy” and an average price target of $14.93. Recent ratings included a strong-buy upgrade, a buy reiteration, and a sell rating from Weiss.
• The company’s latest earnings showed revenue growth of 51.7% to $44.2 million, but EPS missed expectations and margins remained deeply negative. Insider selling has also been notable, including recent sales by a director and the CTO.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded down 1.8% on Thursday . The company traded as low as $6.37 and last traded at $6.68. 30,846,757 shares were traded during trading, an increase of 13% from the average daily volume of 27,360,816 shares. The stock had previously closed at $6.80.

Wall Street Analyst Weigh In

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

SoundHound AI Stock Performance

The stock has a market capitalization of $2.89 billion, a P/E ratio of -14.21 and a beta of 2.62. The stock has a 50-day moving average price of $7.68 and a two-hundred day moving average price of $8.27.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts' consensus estimates 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 business had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. During the same quarter in the prior year, the company earned ($0.06) EPS. SoundHound AI's revenue was up 51.7% compared to the same quarter last year. Equities analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction 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 position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the transaction, the chief technology officer directly owned 502,290 shares of the company's stock, valued at approximately $3,747,083.40. The trade was a 3.61% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Hollencrest Capital Management lifted its stake in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock valued at $25,000 after purchasing an additional 2,400 shares during the period. Northwestern Mutual Wealth Management Co. grew 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 worth $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC grew its stake in SoundHound AI by 152.1% in 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 during the period. Danske Bank A S bought a new position in SoundHound AI in the third quarter worth $26,000. Finally, SHP Wealth Management bought a new position in SoundHound AI in the fourth quarter worth $27,000. Institutional investors own 19.28% of the company's stock.

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.

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