SoundHound AI (NASDAQ:SOUN) Shares Down 9.5% - Here's Why

Key Points

• Shares fell 9.5% to $14.23 on Thursday, with about 42.2 million shares traded (below the ~46.0M average) after a prior close of $15.72.
• SoundHound narrowly beat the quarter's expectations—EPS of -$0.03 vs. -$0.04 and revenue of $42.05M vs. $40.48M—but remains unprofitable with a negative net margin and return on equity.
• Analyst views are mixed (consensus "Moderate Buy" with an average price target of $15.50) while insiders have sold significant stock recently (CEO and COO transactions; ~785,917 shares sold over three months, insiders own ~9.2%).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price was down 9.5% during trading on Thursday . The stock traded as low as $14.23 and last traded at $14.23. Approximately 42,212,188 shares were traded during trading, a decline of 8% from the average daily volume of 46,003,633 shares. The stock had previously closed at $15.72.

Analyst Ratings Changes

Several equities analysts have recently commented on SOUN shares. HC Wainwright raised their price target on SoundHound AI from $18.00 to $26.00 and gave the company a "buy" rating in a research note on Thursday, October 16th. Piper Sandler restated a "neutral" rating and set a $12.00 price target on shares of SoundHound AI in a research note on Monday, July 14th. Oppenheimer started coverage on SoundHound AI in a research note on Thursday, September 11th. They set a "market perform" rating on the stock. Wall Street Zen lowered SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Finally, Wedbush restated an "outperform" rating and set a $16.00 price target on shares of SoundHound AI in a research note on Thursday, September 11th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, SoundHound AI has a consensus rating of "Moderate Buy" and an average price target of $15.50.

SoundHound AI Price Performance

The firm has a market cap of $5.80 billion, a price-to-earnings ratio of -22.59 and a beta of 2.60. The firm has a fifty day simple moving average of $16.61 and a two-hundred day simple moving average of $12.90.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, topping analysts' consensus estimates of ($0.04) by $0.01. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The firm had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI has set its FY 2025 guidance at EPS. Equities analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Keyvan Mohajer sold 118,654 shares of the business's stock in a transaction that occurred on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $2,373,080.00. Following the completion of the sale, the chief executive officer directly owned 2,342,613 shares in the company, valued at $46,852,260. The trade was a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, COO Michael Zagorsek sold 69,837 shares of the business's stock in a transaction that occurred on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total value of $1,117,392.00. Following the sale, the chief operating officer owned 1,860,790 shares of the company's stock, valued at $29,772,640. The trade was a 3.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 785,917 shares of company stock valued at $13,955,610. 9.17% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the business. Cookson Peirce & Co. Inc. lifted its stake in SoundHound AI by 400.0% during the 3rd quarter. Cookson Peirce & Co. Inc. now owns 50,000 shares of the company's stock worth $804,000 after acquiring an additional 40,000 shares in the last quarter. Stratos Wealth Partners LTD. lifted its stake in SoundHound AI by 11.0% during the 3rd quarter. Stratos Wealth Partners LTD. now owns 83,967 shares of the company's stock worth $1,350,000 after acquiring an additional 8,325 shares in the last quarter. Wealthfront Advisers LLC acquired a new position in SoundHound AI during the 3rd quarter worth about $299,000. Oppenheimer & Co. Inc. lifted its stake in SoundHound AI by 14.7% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 20,360 shares of the company's stock worth $327,000 after acquiring an additional 2,610 shares in the last quarter. Finally, Waterloo Capital L.P. acquired a new position in SoundHound AI during the 3rd quarter worth about $161,000. 19.28% of the stock is currently owned by hedge funds and other 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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