SoundHound AI (NASDAQ:SOUN) Shares Down 2.4% - What's Next?

Key Points

• SoundHound AI shares fell by 2.4%, trading as low as $11.37, with a significant decrease in daily trading volume at 10,052,897 shares, down 75% from average levels.
• Several analysts have updated their price targets, with Piper Sandler maintaining a "neutral" rating at $12.00, while DA Davidson and HC Wainwright lowered their targets from $13.00 to $10.00 and from $26.00 to $18.00, respectively.
• SoundHound AI reported a 151.2% increase in quarterly revenue year-over-year, with a total revenue of $29.13 million, though it posted a smaller-than-expected loss per share of ($0.06), beating analyst estimates.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares were down 2.4% during trading on Monday . The company traded as low as $11.37 and last traded at $11.43. Approximately 10,052,897 shares traded hands during trading, a decline of 75% from the average daily volume of 39,696,152 shares. The stock had previously closed at $11.71.

Wall Street Analyst Weigh In

A number of research analysts recently commented on SOUN shares. Piper Sandler reaffirmed a "neutral" rating and set a $12.00 price objective on shares of SoundHound AI in a research report on Monday, July 14th. DA Davidson cut their target price on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a research note on Monday, April 14th. HC Wainwright cut their price objective on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Finally, Wedbush dropped their price objective on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. Five equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $10.50.

SoundHound AI Price Performance

The stock has a market capitalization of $4.48 billion, a P/E ratio of -20.28 and a beta of 2.59. The stock's 50-day simple moving average is $10.59 and its 200 day simple moving average is $10.69.

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

Insider Activity at SoundHound AI

In related news, insider James Ming Hom sold 79,530 shares of the company's 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 $744,400.80. Following the sale, the insider directly owned 637,560 shares in the company, valued at $5,967,561.60. This represents a 11.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 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 owned 1,442,900 shares in the company, valued at $13,505,544. The trade was a 7.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 961,289 shares of company stock valued at $9,247,847. Corporate insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently made changes to their positions in the business. Orion Capital Management LLC bought a new stake in shares of SoundHound AI during the 4th quarter valued at about $30,000. AlphaQuest LLC purchased a new stake in SoundHound AI in the first quarter worth $32,000. Golden State Wealth Management LLC grew its stake in SoundHound AI by 100.0% in the first quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company's stock worth $34,000 after purchasing an additional 2,115 shares during the period. Kozak & Associates Inc. grew its stake in shares of SoundHound AI by 6,249.0% in the second quarter. Kozak & Associates Inc. now owns 3,238 shares of the company's stock worth $35,000 after acquiring an additional 3,187 shares during the last quarter. Finally, Quarry LP grew its stake in shares of SoundHound AI by 1,552.7% in the first quarter. Quarry LP now owns 5,272 shares of the company's stock worth $43,000 after acquiring an additional 4,953 shares during the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.

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