SoundHound AI (NASDAQ:SOUN) Shares Down 4.4% - Time to Sell?

Key Points

• SoundHound AI's shares declined by 4.4%, trading as low as $14.28, while trading volume dropped 46% compared to its average.
• Analysts have mixed ratings on the stock, with one sell rating, three hold ratings, five buy ratings, and a consensus price target of $13.36.
• The company reported a loss of $0.19 EPS for the last quarter, missing estimates, despite a significant revenue increase of 216.3% compared to the previous year.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) was down 4.4% on Monday . The stock traded as low as $14.28 and last traded at $14.91. Approximately 22,076,942 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 41,111,719 shares. The stock had previously closed at $15.59.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on SOUN shares. Wedbush upped their target price on SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. LADENBURG THALM/SH SH raised SoundHound AI from a "neutral" rating to a "buy" rating and upped their target price for the stock from $9.00 to $16.00 in a research report on Monday, August 11th. Wall Street Zen downgraded SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. HC Wainwright reduced their price target on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. Finally, Piper Sandler reissued a "neutral" rating and issued a $12.00 price target on shares of SoundHound AI in a report on Monday, July 14th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.36.

SoundHound AI Stock Performance

The business has a fifty day simple moving average of $11.37 and a 200 day simple moving average of $10.51. The company has a market cap of $5.96 billion, a P/E ratio of -23.56 and a beta of 2.57.

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 analyst estimates of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. SoundHound AI's revenue for the quarter was up 216.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.11) EPS. Equities research analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Activity

In other news, CTO Timothy Stonehocker sold 2,981 shares of SoundHound AI stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $9.68, for a total transaction of $28,856.08. Following the transaction, the chief technology officer directly owned 716,866 shares in the company, valued at approximately $6,939,262.88. This trade represents a 0.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Michael Zagorsek sold 117,180 shares of SoundHound AI stock in a transaction 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 in the company, valued at approximately $12,602,818.80. This trade represents a 8.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 913,317 shares of company stock worth $8,679,813 over the last ninety days. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SOUN. Virtu Financial LLC purchased a new stake in SoundHound AI in the 1st quarter worth approximately $2,395,000. Carnegie Investment Counsel grew its stake in SoundHound AI by 8.9% in the first quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock valued at $8,131,000 after purchasing an additional 87,810 shares in the last quarter. Thoroughbred Financial Services LLC boosted its stake in shares of SoundHound AI by 38.4% during the 1st quarter. Thoroughbred Financial Services LLC now owns 113,475 shares of the company's stock worth $921,000 after acquiring an additional 31,500 shares in the last quarter. Liontrust Investment Partners LLP acquired a new position in SoundHound AI in the 1st quarter valued at $1,639,000. Finally, Yarbrough Capital LLC bought a new stake in SoundHound AI during the 1st quarter valued at approximately $1,258,000. Hedge funds and other institutional investors own 19.28% of the company's stock.

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.

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