SoundHound AI (NASDAQ:SOUN) Shares Down 2.3% - Time to Sell?

Key Points

• SoundHound AI shares fell 2.3% on Monday, trading as low as $6.39 and ending near $6.49 on heavier-than-average volume. The move came after the stock had closed at $6.64 in the prior session.
• Analyst sentiment remains mixed but leans positive, with a consensus “Moderate Buy” rating and an average price target of $14.93. Recent reports included upgrades to strong-buy and buy ratings, though one firm reiterated a sell rating.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a quarterly loss of $0.06 per share, slightly worse than expected. Executives also sold shares recently, though the company said those sales were tied to tax withholding from equity vesting.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 2.3% on Monday . The stock traded as low as $6.39 and last traded at $6.49. Approximately 29,333,806 shares were traded during trading, an increase of 7% from the average session volume of 27,352,227 shares. The stock had previously closed at $6.64.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of analyst reports. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. DA Davidson reissued a "buy" rating and set a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. One 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, the company has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Price Performance

The stock has a market cap of $2.81 billion, a P/E ratio of -13.81 and a beta of 2.62. The firm's fifty day moving average price is $7.63 and its two-hundred day moving average price is $8.21.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (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 business had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. During the same period in the prior year, the business posted ($0.06) EPS. SoundHound AI's quarterly revenue was up 51.7% on a year-over-year basis. On average, research analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Activity

In related news, CTO Timothy Stonehocker sold 18,802 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the sale, the chief technology officer directly owned 502,290 shares of the company's stock, valued at $3,747,083.40. This trade represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $484,855.24. Following the sale, the chief operating officer owned 1,669,497 shares of the company's stock, valued at approximately $12,454,447.62. The trade was a 3.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 268,022 shares of company stock worth $1,999,444. Company insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently made changes to their positions in the stock. Danske Bank A S purchased a new position in SoundHound AI in the third quarter worth $26,000. Northwestern Mutual Wealth Management Co. raised its position in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC raised its position in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock valued at $26,000 after purchasing an additional 1,544 shares in the last quarter. SHP Wealth Management bought a new stake in SoundHound AI during the fourth quarter worth about $27,000. Finally, Parallel Advisors LLC lifted its stake in SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after purchasing an additional 960 shares during the last quarter. 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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