SoundHound AI (NASDAQ:SOUN) Shares Down 4.8% - Time to Sell?

Key Points

• SoundHound AI shares fell 4.8% on Monday, trading as low as $8.36 before closing at $8.45, with volume running above average at 34.8 million shares.
• Analyst sentiment remains mixed but leans positive: the stock has an average rating of “Moderate Buy” and an average price target of $14.93, though some firms trimmed targets or kept neutral views.
• The company recently reported revenue growth of 51.7% year over year, but it still posted a quarterly loss of $0.06 per share, slightly worse than estimates, and insiders have also been selling shares.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares fell 4.8% during trading on Monday . The stock traded as low as $8.36 and last traded at $8.45. 34,769,135 shares were traded during trading, an increase of 24% from the average session volume of 27,965,973 shares. The stock had previously closed at $8.88.

Analyst Ratings Changes

Several research firms have commented on SOUN. DA Davidson reaffirmed a "buy" rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. Piper Sandler reaffirmed a "neutral" rating and set 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 raised SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Finally, HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Trading Down 4.8%

The company has a 50 day simple moving average of $7.57 and a 200 day simple moving average of $10.18. The stock has a market capitalization of $3.57 billion, a PE ratio of -17.98 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The business had revenue of $44.20 million for the quarter, compared to analysts' expectations of $42.56 million. SoundHound AI had a negative return on equity of 41.46% and a negative net margin of 91.84%.The business's quarterly revenue was up 51.7% on a year-over-year basis. During the same period last year, the company posted ($0.06) earnings per share. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 31,019 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the transaction, the senior vice president directly owned 501,826 shares of the company's stock, valued at approximately $3,407,398.54. This represents a 5.82% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $298,943.33. Following the transaction, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at approximately $11,279,011.59. This trade represents a 2.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently modified their holdings of SOUN. Royal Bank of Canada raised its stake in shares of SoundHound AI by 71.3% during 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 in the last quarter. Integrated Wealth Concepts LLC raised its stake in shares of SoundHound AI by 8.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock worth $119,000 after buying an additional 1,201 shares in the last quarter. NewEdge Advisors LLC grew its holdings in shares of SoundHound AI by 12.9% in the 1st 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 holdings in shares of SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock worth $21,434,000 after acquiring an additional 1,085,473 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of SoundHound AI by 10.1% in 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 worth $5,620,000 after acquiring an additional 63,398 shares during the period. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.