SoundHound AI (NASDAQ:SOUN) Shares Down 3% - Time to Sell?

Key Points

• SoundHound AI's shares fell by 3% to last trade at $20.76, with a noticeable decline in trading volume, suggesting volatility in the stock market activity.
• Analysts have varied opinions on SoundHound AI, with LADENBURG THALM/SH SH upgrading the stock to a "buy" rating and raising its target price significantly, whereas Wall Street Zen downgraded it to a "sell."
• The company reported a revenue of $42.68 million, showcasing a 216.3% increase compared to the same quarter last year, but missed EPS estimates, indicating mixed financial performance.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares were down 3% on Thursday . The company traded as low as $20.22 and last traded at $20.76. Approximately 42,218,079 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 46,845,914 shares. The stock had previously closed at $21.40.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on SOUN shares. LADENBURG THALM/SH SH raised SoundHound AI from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $9.00 to $16.00 in a research note on Monday, August 11th. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target on the stock in a research note on Friday, August 8th. Wall Street Zen cut SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Piper Sandler reaffirmed a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research note on Monday, July 14th. Finally, HC Wainwright lifted their target price on SoundHound AI from $18.00 to $26.00 and gave the company a "buy" rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $15.50.

SoundHound AI Stock Performance

The firm has a market cap of $8.46 billion, a P/E ratio of -32.95 and a beta of 2.60. The company has a 50 day moving average of $15.38 and a 200 day moving average of $11.81.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The firm had revenue of $42.68 million during 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 quarterly revenue was up 216.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.11) EPS. SoundHound AI has set its FY 2025 guidance at EPS. As a group, analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, CEO Keyvan Mohajer sold 118,654 shares of the business's 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 completion of the sale, the chief executive officer directly owned 2,342,613 shares in the company, valued at approximately $46,852,260. The trade was a 4.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Michael Zagorsek sold 69,837 shares of the business's stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total value of $1,117,392.00. Following the completion of the sale, the chief operating officer owned 1,860,790 shares of the company's stock, valued at approximately $29,772,640. This trade represents a 3.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 725,541 shares of company stock worth $12,675,035. 9.17% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. lifted its holdings 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 purchasing an additional 1,060 shares during the last quarter. Advisors Asset Management Inc. lifted its holdings in SoundHound AI by 68.4% in the 2nd 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 during the last quarter. Investors Research Corp lifted its holdings in shares of SoundHound AI by 62.4% during the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after buying an additional 700 shares during the last quarter. AlphaQuest LLC acquired a new position in shares of SoundHound AI during the first quarter worth approximately $32,000. Finally, Huntington National Bank lifted its holdings in shares of SoundHound AI by 48.8% during the second quarter. Huntington National Bank now owns 3,050 shares of the company's stock worth $33,000 after buying an additional 1,000 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.