SoundHound AI (NASDAQ:SOUN) Shares Down 3.4% - Time to Sell?

Key Points

• SoundHound AI shares fell 3.4% on Monday, trading between $6.86 and $6.88, below the prior close of $7.12, with volume also running below average.
• Recent analyst sentiment is mixed but leans positive overall: Piper Sandler cut its price target to $9 and kept a neutral rating, while the consensus rating remains Moderate Buy with an average target price of $14.93.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a loss, missed EPS estimates by $0.01, and saw insider selling by two executives in June.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 3.4% during trading on Monday . The stock traded as low as $6.86 and last traded at $6.88. Approximately 23,546,710 shares changed hands during trading, a decline of 14% from the average session volume of 27,427,508 shares. The stock had previously closed at $7.12.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Piper Sandler reiterated a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. HC Wainwright decreased their price target on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. Finally, DA Davidson reiterated a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $14.93.

SoundHound AI Stock Down 3.4%

The company has a market cap of $2.98 billion, a PE ratio of -14.64 and a beta of 2.56. The firm's 50-day moving average is $7.95 and its 200-day moving average is $8.75.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million for the quarter, compared to analysts' expectations of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The business's quarterly revenue was up 51.7% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.06) EPS. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, insider James Ming Hom sold 28,843 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the insider directly owned 743,521 shares of the company's stock, valued at approximately $5,546,666.66. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $484,855.24. Following the completion of the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at $12,454,447.62. This trade represents a 3.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SOUN. Royal Bank of Canada boosted its holdings in SoundHound AI by 71.3% in the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company's stock worth $1,301,000 after buying an additional 66,714 shares during the period. Integrated Wealth Concepts LLC lifted its position in shares of SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock valued at $119,000 after acquiring an additional 1,201 shares in the last quarter. NewEdge Advisors LLC boosted its stake in shares of SoundHound AI by 12.9% in the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company's stock worth $333,000 after acquiring an additional 4,692 shares during the period. Goldman Sachs Group Inc. grew 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 worth $21,434,000 after purchasing an additional 1,085,473 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in SoundHound AI by 10.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company's stock valued at $5,620,000 after purchasing an additional 63,398 shares during the period. Institutional investors own 19.28% of the company's stock.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

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