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 traded down 3.3% on Wednesday . The company traded as low as $10.79 and last traded at $10.80. 8,060,366 shares traded hands during trading, a decline of 79% from the average session volume of 39,027,164 shares. The stock had previously closed at $11.17.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. DA Davidson reduced their price objective 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 reduced 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 note on Monday, May 12th. Piper Sandler restated a "neutral" rating and set a $12.00 price objective on shares of SoundHound AI in a research note on Monday, July 14th. Finally, Wedbush reduced 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 investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to MarketBeat, SoundHound AI currently has an average rating of "Hold" and an average price target of $10.50.

SoundHound AI Stock Performance

The business's fifty day moving average price is $10.69 and its 200-day moving average price is $10.57. The stock has a market cap of $4.37 billion, a PE ratio of -19.74 and a beta of 2.57.

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

Insider Buying and Selling

In related news, COO Michael Zagorsek sold 117,180 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 $1,096,804.80. Following the transaction, the chief operating officer owned 1,346,455 shares of the company's stock, valued at approximately $12,602,818.80. This trade represents a 8.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Majid Emami sold 132,352 shares of the firm's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $10.04, for a total transaction of $1,328,814.08. Following the completion of the transaction, the vice president directly owned 537,482 shares in the company, valued at approximately $5,396,319.28. The trade was a 19.76% decrease in their position. 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 90 days. 9.17% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently added to or reduced their stakes in SOUN. Vanguard Group Inc. lifted its holdings in SoundHound AI by 9.5% during the first quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after purchasing an additional 3,028,281 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in SoundHound AI by 84.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock valued at $40,390,000 after purchasing an additional 2,274,105 shares in the last quarter. Rockefeller Capital Management L.P. purchased a new position in SoundHound AI during the fourth quarter valued at approximately $41,595,000. Invesco Ltd. raised its position in shares of SoundHound AI by 1,386.2% during the fourth quarter. Invesco Ltd. now owns 1,382,371 shares of the company's stock valued at $27,426,000 after buying an additional 1,289,360 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of SoundHound AI by 69.8% during the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after buying an additional 1,085,473 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.

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.

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.