SoundHound AI (NASDAQ:SOUN) Shares Down 6.6% - Time to Sell?

Key Points

• SoundHound AI's shares dropped by 6.6%, trading as low as $15.44 on Friday with a significant decline in trading volume.
• After recent earnings results, SoundHound AI reported a quarterly revenue of $42.68 million but missed earnings estimates, leading to a forecast of -0.38 EPS for the current year.
• A variety of analysts have adjusted their price targets for SoundHound AI, with ratings ranging from "sell" to "strong buy," reflecting varied sentiments about the company's future performance.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded down 6.6% during trading on Friday . The company traded as low as $15.44 and last traded at $15.45. 17,545,051 shares traded hands during trading, a decline of 57% from the average session volume of 41,076,828 shares. The stock had previously closed at $16.54.

Analysts Set New Price Targets

A number of equities analysts recently commented on SOUN shares. HC Wainwright cut their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research note on Monday, May 12th. Northland Securities upgraded shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective on the stock in a report on Friday, August 8th. Wedbush increased their price target on SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a report on Friday, August 8th. Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Finally, Piper Sandler restated a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a report on Monday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $13.36.

SoundHound AI Price Performance

The stock has a fifty day moving average price of $11.54 and a 200 day moving average price of $10.54. The stock has a market capitalization of $5.34 billion, a P/E ratio of -21.11 and a beta of 2.57.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The business had revenue of $42.68 million during the quarter, compared to the consensus estimate of $32.88 million. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.SoundHound AI's revenue was up 216.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. Research analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling at SoundHound AI

In related news, CFO Nitesh Sharan sold 111,111 shares of the company's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $1,039,998.96. Following the transaction, the chief financial officer owned 1,442,900 shares in the company, valued at $13,505,544. The trade was a 7.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Majid Emami sold 132,352 shares of the company's stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $10.04, for a total value of $1,328,814.08. Following 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 ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 913,317 shares of company stock worth $8,679,813. 9.17% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 9.5% during the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after buying an additional 3,028,281 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of SoundHound AI by 8.3% in the 2nd quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company's stock valued at $94,759,000 after purchasing an additional 679,436 shares during the last quarter. State Street Corp increased its position in shares of SoundHound AI by 9.1% during the 2nd quarter. State Street Corp now owns 8,476,348 shares of the company's stock valued at $90,951,000 after purchasing an additional 708,369 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in SoundHound AI by 1.0% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,024,632 shares of the company's stock valued at $53,906,000 after buying an additional 50,904 shares during the period. Finally, Northern Trust Corp boosted its stake in SoundHound AI by 2.5% during the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock worth $24,190,000 after buying an additional 72,766 shares during the period. 19.28% of the stock is currently owned by institutional investors.

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.