SoundHound AI (NASDAQ:SOUN) Shares Down 4.1% - Here's Why

Key Points

• Shares dropped 4.1% to $7.47 on Thursday with volume of ~19.3M (down 28% vs. average); the stock trades below its 50‑ and 200‑day moving averages ($9.19 and $12.57), has a market cap of $3.14B, a negative P/E and a beta of 2.65.
• SoundHound reported Q results with EPS of ($0.02) (in line with estimates) and revenue of $55.06M, beating the $53.88M estimate and rising 59.4% year‑over‑year; analysts forecast a full‑year EPS of about -0.38.
• Analyst actions are mixed but the consensus is a "Moderate Buy" with an average price target of $14.93; meanwhile insiders sold ~460,922 shares last quarter (including CEO and SVP disposals), even as institutional holders like Vanguard, Morgan Stanley and UBS increased stakes.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares dropped 4.1% on Thursday . The stock traded as low as $7.43 and last traded at $7.47. Approximately 19,307,660 shares were traded during trading, a decline of 28% from the average daily volume of 26,869,063 shares. The stock had previously closed at $7.79.

Analyst Ratings Changes

Several research firms have commented on SOUN. HC Wainwright decreased their target price on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Cantor Fitzgerald upgraded shares of SoundHound AI from a "neutral" rating to an "overweight" rating and increased their price target for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Piper Sandler reissued a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. Finally, DA Davidson set a $14.00 target price on SoundHound AI in a research note on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three 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 an average price target of $14.93.

SoundHound AI Price Performance

The business's 50-day simple moving average is $9.19 and its two-hundred day simple moving average is $12.57. The stock has a market cap of $3.14 billion, a price-to-earnings ratio of -149.37 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The company had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. During the same period in the prior year, the business earned ($0.05) earnings per share. The company's revenue for the quarter was up 59.4% compared to the same quarter last year. Equities research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In other SoundHound AI news, CEO Keyvan Mohajer sold 144,326 shares of the stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $1,627,997.28. Following the completion of the transaction, the chief executive officer directly owned 2,198,287 shares in the company, valued at approximately $24,796,677.36. This trade represents a 6.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Majid Emami sold 42,600 shares of SoundHound AI stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $480,528.00. Following the sale, the senior vice president directly owned 565,586 shares in the company, valued at $6,379,810.08. The trade was a 7.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 460,922 shares of company stock worth $5,199,073. Company insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently added to or reduced their stakes in SOUN. Vanguard Group Inc. increased its position in SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company's stock valued at $698,798,000 after acquiring an additional 6,132,648 shares during the period. Morgan Stanley grew its stake in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the last quarter. UBS Group AG grew its stake in shares of SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock worth $61,059,000 after purchasing an additional 2,676,707 shares during the last quarter. Voloridge Investment Management LLC increased its holdings in SoundHound AI by 2,259.7% in the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company's stock valued at $21,929,000 after purchasing an additional 2,106,298 shares during the period. Finally, Jump Financial LLC bought a new position in SoundHound AI during the 3rd quarter worth $21,679,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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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