SoundHound AI (NASDAQ:SOUN) Shares Down 3.3% - Here's Why

Key Points

• SoundHound AI's stock fell by 3.3% to $10.80, with a significant drop in trading volume, down 79% from its average.
• Analyst price targets for SoundHound AI have been reduced, with DA Davidson lowering theirs from $13.00 to $10.00, indicating a bearish sentiment among analysts.
• Despite a 151.2% increase in revenue year-over-year, SoundHound AI reported a negative net margin of 184.34% and earnings per share that was lower than consensus estimates.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price was down 3.3% during mid-day trading on Wednesday . The company traded as low as $10.79 and last traded at $10.80. Approximately 8,060,366 shares traded hands during trading, a decline of 79% from the average daily volume of 39,027,164 shares. The stock had previously closed at $11.17.

Analyst Ratings Changes

A number of research analysts have recently issued reports on SOUN shares. 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 report on Friday. Piper Sandler reaffirmed a "neutral" rating and set a $12.00 price target on shares of SoundHound AI in a report on Monday, July 14th. HC Wainwright lowered their price target on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a report on Monday, May 12th. Northland Capmk raised SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday. Finally, Wedbush upped their price target on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a report on Friday. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $11.44.

SoundHound AI Stock Up 26.4%

The business has a fifty day simple moving average of $10.76 and a two-hundred day simple moving average of $10.49. The company has a market cap of $5.44 billion, a P/E ratio of -21.51 and a beta of 2.57.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The company had revenue of $42.68 million during the quarter, compared to analysts' expectations of $32.88 million. SoundHound AI had a negative return on equity of 77.38% and a negative net margin of 171.81%. The business's quarterly revenue was up 216.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.11) EPS. On average, equities analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity

In other SoundHound AI news, VP Majid Emami sold 60,295 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $10.00, for a total transaction of $602,950.00. Following the completion of the transaction, the vice president owned 477,657 shares in the company, valued at $4,776,570. This trade represents a 11.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Nitesh Sharan sold 111,111 shares of the firm's stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $1,039,998.96. Following the completion of the sale, the chief financial officer directly owned 1,442,900 shares of the company's stock, 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. Insiders have sold a total of 961,289 shares of company stock valued at $9,247,847 in the last three months. 9.17% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors have recently modified their holdings of SOUN. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 9.5% during the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock worth $284,687,000 after acquiring an additional 3,028,281 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of SoundHound AI by 8.3% during the 2nd quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company's stock worth $94,759,000 after acquiring an additional 679,436 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of SoundHound AI by 84.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock worth $40,390,000 after acquiring an additional 2,274,105 shares during the last quarter. Northern Trust Corp lifted its stake in shares of SoundHound AI by 2.5% during the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock worth $24,190,000 after acquiring an additional 72,766 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in shares of SoundHound AI by 4.5% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,847,261 shares of the company's stock worth $23,120,000 after acquiring an additional 121,568 shares during the last quarter. 19.28% of the stock is 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.