SoundHound AI (NASDAQ:SOUN) Shares Down 2.9% - Time to Sell?

Key Points

• SoundHound AI (NASDAQ:SOUN) shares have decreased by 2.9%, trading at $17.11, with a notable decline in trading volume compared to average levels.
• A mixed bag of analyst ratings exist for SoundHound AI, with a consensus rating of "Moderate Buy" and price targets ranging from $14.50 to $26.00.
• Insider trading activity showed significant sales, including a transaction by CFO Nitesh Sharan who sold over 60,000 shares, suggesting caution among company executives.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 2.9% during mid-day trading on Monday . The company traded as low as $16.42 and last traded at $17.11. Approximately 35,915,638 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 46,109,773 shares. The stock had previously closed at $17.62.

Analyst Ratings Changes

A number of research firms recently commented on SOUN. Wedbush reiterated an "outperform" rating and set a $16.00 price target on shares of SoundHound AI in a report on Thursday, September 11th. Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a research note on Friday, August 8th. Weiss Ratings reissued a "sell (d-)" rating on shares of SoundHound AI in a report on Tuesday, October 14th. Wall Street Zen downgraded SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, HC Wainwright lifted their price objective on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a "buy" rating in a research report on Thursday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, SoundHound AI currently has a consensus rating of "Moderate Buy" and a consensus price target of $15.50.

SoundHound AI Stock Performance

The company has a fifty day moving average of $16.37 and a two-hundred day moving average of $12.76. The firm has a market capitalization of $6.98 billion, a price-to-earnings ratio of -27.16 and a beta of 2.60.

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

Insiders Place Their Bets

In related news, CFO Nitesh Sharan sold 60,376 shares of the business's stock in a transaction that occurred on Tuesday, October 14th. The stock was sold at an average price of $21.21, for a total value of $1,280,574.96. Following the completion of the sale, the chief financial officer directly owned 1,765,928 shares in the company, valued at approximately $37,455,332.88. The trade was a 3.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Keyvan Mohajer sold 118,654 shares of the stock in a transaction that occurred on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $2,373,080.00. Following the sale, the chief executive officer directly owned 2,342,613 shares in the company, valued at $46,852,260. This represents a 4.82% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 785,917 shares of company stock worth $13,955,610. 9.17% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

A number of institutional investors have recently modified their holdings of the stock. Sound Income Strategies LLC raised its stake in SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock valued at $34,000 after purchasing an additional 575 shares in the last quarter. Investors Research Corp raised its position in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company's stock valued at $29,000 after buying an additional 700 shares in the last quarter. EP Wealth Advisors LLC lifted its holdings in shares of SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after acquiring an additional 706 shares during the period. Janney Montgomery Scott LLC boosted its position in shares of SoundHound AI by 4.0% during the 2nd quarter. Janney Montgomery Scott LLC now owns 23,073 shares of the company's stock worth $248,000 after acquiring an additional 880 shares in the last quarter. Finally, Apexium Financial LP increased its stake in SoundHound AI by 2.8% in the second quarter. Apexium Financial LP now owns 36,698 shares of the company's stock valued at $394,000 after acquiring an additional 1,000 shares during the last quarter. 19.28% of the stock is currently owned by 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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