SoundHound AI (NASDAQ:SOUN) Shares Down 1.1% - Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares fell 1.1% during mid-day trading on Wednesday . The company traded as low as $9.72 and last traded at $9.82. 9,780,844 shares changed hands during trading, a decline of 74% from the average session volume of 38,307,406 shares. The stock had previously closed at $9.93.

Analyst Ratings Changes

SOUN has been the subject of a number of analyst reports. Cantor Fitzgerald raised shares of SoundHound AI to a "hold" rating in a research report on Monday, February 24th. Wedbush decreased their target price on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. HC Wainwright decreased their target price on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research note on Monday, May 12th. Piper Sandler assumed coverage on shares of SoundHound AI in a report on Tuesday, May 27th. They issued an "overweight" rating and a $12.00 price target on the stock. Finally, DA Davidson dropped their target price on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Four research analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $10.50.

SoundHound AI Price Performance

The firm has a market cap of $3.80 billion, a P/E ratio of -26.31 and a beta of 2.64. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The stock's 50-day moving average is $9.21 and its 200-day moving average is $11.84.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.09) by $0.03. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The company had revenue of $29.13 million for the quarter, compared to analyst estimates of $30.38 million. During the same period in the prior year, the business earned ($0.07) earnings per share. SoundHound AI's quarterly revenue was up 151.2% on a year-over-year basis. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, Director Diana Sroka sold 3,402 shares of the business's stock in a transaction on Monday, March 24th. The shares were sold at an average price of $10.08, for a total transaction of $34,292.16. Following the sale, the director now owns 138,850 shares of the company's stock, valued at approximately $1,399,608. The trade was a 2.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CTO Timothy Stonehocker sold 3,333 shares of SoundHound AI stock in a transaction on Monday, March 24th. The stock was sold at an average price of $10.08, for a total transaction of $33,596.64. Following the transaction, the chief technology officer now owns 765,534 shares in the company, valued at approximately $7,716,582.72. This trade represents a 0.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold 548,537 shares of company stock valued at $5,567,760 over the last quarter. Corporate insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of SoundHound AI by 35.6% during the fourth quarter. Vanguard Group Inc. now owns 32,031,662 shares of the company's stock worth $635,508,000 after acquiring an additional 8,402,881 shares in the last quarter. 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 worth $40,390,000 after buying an additional 2,274,105 shares during the period. Rockefeller Capital Management L.P. bought a new position in SoundHound AI in the 4th quarter worth approximately $41,595,000. Invesco Ltd. lifted its stake in SoundHound AI by 1,386.2% in the 4th quarter. Invesco Ltd. now owns 1,382,371 shares of the company's stock worth $27,426,000 after purchasing an additional 1,289,360 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock worth $21,434,000 after purchasing an additional 1,085,473 shares in the last quarter. 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.