SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.7% - Time to Sell?

Key Points

• SoundHound AI's shares fell by 2.7% to $14.46, with trading volume down 49% from the average, indicating reduced investor activity.
• Despite a positive revenue performance of $42.68 million, the company reported a larger-than-expected loss of ($0.19) per share in its recent earnings announcement.
• Analysts have mixed ratings on the stock, with one rating it a "Strong Buy" and three issuing a "Sell," leading to an average rating of "Moderate Buy" with a price target of $14.36.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares traded down 2.7% during trading on Wednesday . The stock traded as low as $14.17 and last traded at $14.46. 22,059,840 shares changed hands during trading, a decline of 49% from the average session volume of 43,363,141 shares. The stock had previously closed at $14.85.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on SOUN shares. Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective for the company in a research report on Friday, August 8th. Wedbush restated an "outperform" rating and set a $16.00 price target on shares of SoundHound AI in a report on Thursday. LADENBURG THALM/SH SH raised SoundHound AI from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $9.00 to $16.00 in a research note on Monday, August 11th. Piper Sandler reiterated a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research report on Monday, July 14th. Finally, Northland Capmk raised shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.36.

SoundHound AI Price Performance

The business has a 50-day moving average of $12.73 and a 200-day moving average of $10.59. The company has a market capitalization of $5.76 billion, a P/E ratio of -22.41 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The firm had revenue of $42.68 million for the quarter, compared to the consensus estimate of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The company's revenue was up 216.3% on a year-over-year basis. During the same quarter last year, the firm earned ($0.11) EPS. SoundHound AI has set its FY 2025 guidance at EPS. Sell-side analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insiders Place Their Bets

In other SoundHound AI news, VP Majid Emami sold 60,295 shares of the company's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $10.00, for a total value of $602,950.00. Following the transaction, the vice president owned 477,657 shares of the company's stock, valued at $4,776,570. This represents a 11.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Keyvan Mohajer sold 254,376 shares of the business's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $2,380,959.36. Following the sale, the chief executive officer directly owned 1,749,790 shares of the company's stock, valued at $16,378,034.40. This represents a 12.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 780,965 shares of company stock valued at $7,350,999 over the last quarter. Corporate insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. grew its stake in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after acquiring an additional 1,060 shares in the last quarter. Advisors Asset Management Inc. grew its stake in SoundHound AI by 68.4% in the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock worth $27,000 after purchasing an additional 1,023 shares in the last quarter. Orion Capital Management LLC bought a new position in SoundHound AI in the fourth quarter worth approximately $30,000. AlphaQuest LLC purchased a new position in SoundHound AI during the 1st quarter worth $32,000. Finally, Huntington National Bank raised its position in SoundHound AI by 48.8% during the 2nd quarter. Huntington National Bank now owns 3,050 shares of the company's stock valued at $33,000 after purchasing an additional 1,000 shares in the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.