SoundHound AI (NASDAQ:SOUN) Shares Down 6.7% - What's Next?

Key Points

• Shares fell 6.7% to $13.44 on Tuesday with 30.96 million shares traded, about a 33% decline from the stock's average daily volume.
• SoundHound beat quarterly estimates (EPS of -$0.03 vs. -$0.09 and revenue $42.05M vs. $40.48M) and revenue grew 67.6% YoY, but the company remains unprofitable with a negative net margin of 211.16% and negative ROE; analysts hold a “Moderate Buy” consensus and a $15.93 average target.
• Insiders have been selling, offloading 785,917 shares (~$14M) in the last 90 days — including CFO and VP sales — though insiders still own 9.17% of the stock.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price fell 6.7% during trading on Tuesday . The company traded as low as $13.30 and last traded at $13.44. 30,957,971 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 45,932,758 shares. The stock had previously closed at $14.41.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on SOUN. DA Davidson boosted their price objective on SoundHound AI from $15.00 to $17.00 and gave the stock a "buy" rating in a research report on Wednesday, September 10th. Oppenheimer initiated coverage on SoundHound AI in a research report on Thursday, September 11th. They issued a "market perform" rating for the company. Wedbush reissued an "outperform" rating and issued a $16.00 price target on shares of SoundHound AI in a report on Thursday, September 11th. Northland Securities upgraded shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target on the stock in a research report on Friday, August 8th. Finally, Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $15.93.

SoundHound AI Trading Down 6.7%

The company has a 50 day moving average of $16.69 and a 200 day moving average of $13.05. The firm has a market cap of $5.48 billion, a price-to-earnings ratio of -16.00 and a beta of 2.60.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.06. The firm had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 100.07%. The firm's quarterly revenue was up 67.6% on a year-over-year basis. During the same period last year, the firm posted ($0.04) EPS. SoundHound AI has set its FY 2025 guidance at EPS. As a group, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, CFO Nitesh Sharan sold 60,376 shares of the business's stock in a transaction on Tuesday, October 14th. The stock was sold at an average price of $21.21, for a total transaction of $1,280,574.96. Following the completion of the sale, the chief financial officer owned 1,765,928 shares in the company, valued at $37,455,332.88. The trade was a 3.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Majid Emami sold 41,167 shares of SoundHound AI stock in a transaction dated Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $823,340.00. Following the completion of the sale, the vice president owned 608,186 shares of the company's stock, valued at approximately $12,163,720. The trade was a 6.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 785,917 shares of company stock worth $13,955,610. Corporate insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Institutional investors and hedge funds have recently modified their holdings of the business. Virtu Financial LLC acquired a new stake in SoundHound AI during the 1st quarter worth approximately $2,395,000. Northern Trust Corp grew its holdings in shares of 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 in the last quarter. Carnegie Investment Counsel raised its position in SoundHound AI by 8.9% in the 1st quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock valued at $8,131,000 after buying an additional 87,810 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new stake in SoundHound AI in the 2nd quarter valued at approximately $3,696,000. Finally, Liontrust Investment Partners LLP bought a new stake in shares of SoundHound AI in the first quarter worth $1,639,000. 19.28% of the stock is 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.

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