SoundHound AI (NASDAQ:SOUN) Shares Gap Down - Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares gapped down prior to trading on Monday . The stock had previously closed at $11.57, but opened at $11.10. SoundHound AI shares last traded at $10.96, with a volume of 15,205,775 shares trading hands.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. HC Wainwright cut their price objective on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. DA Davidson cut their price objective on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a research report on Monday, April 14th. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 price objective on shares of SoundHound AI in a research report on Monday. Finally, Wedbush cut their price objective on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating on the stock in a research report on Friday, May 9th. Five equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $10.50.

SoundHound AI Trading Down 4.1%

The stock has a market capitalization of $4.46 billion, a price-to-earnings ratio of -20.21 and a beta of 2.59. The firm's 50 day simple moving average is $10.26 and its 200-day simple moving average is $11.23.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, May 8th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.03. The company had revenue of $29.13 million for the quarter, compared to analyst estimates of $30.38 million. SoundHound AI had a negative net margin of 184.34% and a negative return on equity of 68.55%. SoundHound AI's revenue for the quarter was up 151.2% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.07) EPS. As a group, equities research analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other news, COO Michael Zagorsek sold 117,180 shares of the business's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,096,804.80. Following the transaction, the chief operating officer directly owned 1,346,455 shares in the company, valued at $12,602,818.80. The trade was a 8.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider James Ming Hom sold 79,530 shares of SoundHound AI stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $744,400.80. Following the sale, the insider directly owned 637,560 shares of the company's stock, valued at $5,967,561.60. The trade was a 11.09% decrease in their position. The disclosure for this sale can be found here. Insiders sold 961,289 shares of company stock worth $9,247,847 over the last ninety days. Company insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in SoundHound AI by 9.5% in the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock valued at $284,687,000 after purchasing an additional 3,028,281 shares during the period. Geode Capital Management LLC boosted its holdings in SoundHound AI by 4.4% in the 4th quarter. Geode Capital Management LLC now owns 7,509,496 shares of the company's stock valued at $149,024,000 after purchasing an additional 315,897 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in SoundHound AI by 84.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock valued at $40,390,000 after purchasing an additional 2,274,105 shares during the period. Northern Trust Corp boosted its holdings in SoundHound AI by 2.5% in the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after purchasing an additional 72,766 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its holdings in SoundHound AI by 4.5% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,847,261 shares of the company's stock valued at $23,120,000 after purchasing an additional 121,568 shares during the period. Institutional investors own 19.28% of the company's stock.

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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