SoundHound AI (NASDAQ:SOUN) Shares Down 8% After Insider Selling

Key Points

• SoundHound AI's shares fell by 8% following insider selling by COO Michael Zagorsek and CTO Timothy Stonehocker, with Zagorsek selling about 69,837 shares at an average price of $16.00.
• Several analysts have provided mixed ratings on SoundHound AI, with a consensus rating of "Moderate Buy" and a price target averaging around $14.36 despite some analysts downgrading the stock.
• The company reported earnings that missed expectations, with a loss of ($0.19) per share and revenue of $42.68 million, highlighting significant year-over-year revenue growth of 216.3%.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 8% during mid-day trading on Thursday after an insider sold shares in the company. The company traded as low as $15.82 and last traded at $16.35. Approximately 71,203,098 shares traded hands during mid-day trading, an increase of 56% from the average daily volume of 45,725,801 shares. The stock had previously closed at $17.78.

Specifically, COO Michael Zagorsek sold 69,837 shares of the stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $16.00, for a total transaction of $1,117,392.00. Following the completion of the sale, the chief operating officer owned 1,860,790 shares in the company, valued at approximately $29,772,640. This represents a 3.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Timothy Stonehocker sold 2,247 shares of the stock in a transaction dated Wednesday, September 24th. The stock was sold at an average price of $17.90, for a total transaction of $40,221.30. Following the sale, the chief technology officer owned 677,049 shares of the company's stock, valued at $12,119,177.10. This trade represents a 0.33% decrease in their position. The disclosure for this sale can be found here. In related news, CTO Timothy Stonehocker sold 37,570 shares of the firm's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $601,120.00. Following the completion of the sale, the chief technology officer owned 679,296 shares in the company, valued at $10,868,736. This trade represents a 5.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. HC Wainwright reiterated a "buy" rating and set a $18.00 price target on shares of SoundHound AI in a research report on Wednesday, September 17th. Wall Street Zen downgraded shares of SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Northland Securities upgraded shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target for the company in a research report on Friday, August 8th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and lifted their price target for the company from $9.00 to $16.00 in a research report on Monday, August 11th. Finally, Oppenheimer assumed coverage on shares of SoundHound AI in a research note on Thursday, September 11th. They set a "market perform" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, SoundHound AI presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.36.

SoundHound AI Stock Performance

The firm has a market cap of $6.67 billion, a price-to-earnings ratio of -25.95 and a beta of 2.58. The company's fifty day moving average is $13.40 and its two-hundred day moving average is $10.94.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The business had revenue of $42.68 million for 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%. The business's revenue was up 216.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.11) EPS. SoundHound AI has set its FY 2025 guidance at EPS. As a group, analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently made changes to their positions in SOUN. Northwestern Mutual Wealth Management Co. lifted its holdings in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after buying an additional 1,060 shares in the last quarter. Advisors Asset Management Inc. lifted its holdings in SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock worth $27,000 after buying an additional 1,023 shares in the last quarter. Huntington National Bank lifted its holdings in SoundHound AI by 48.8% in the 2nd quarter. Huntington National Bank now owns 3,050 shares of the company's stock worth $33,000 after buying an additional 1,000 shares in the last quarter. Kozak & Associates Inc. lifted its holdings in SoundHound AI by 6,249.0% in the 2nd quarter. Kozak & Associates Inc. now owns 3,238 shares of the company's stock worth $35,000 after buying an additional 3,187 shares in the last quarter. Finally, AlphaQuest LLC acquired a new position in SoundHound AI in the 1st quarter worth $32,000. Institutional investors and hedge funds own 19.28% of the company's stock.

About SoundHound AI

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.