SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.1% - Time to Sell?

Key Points

• SoundHound AI's stock price dropped by 1.1% to $12.40, with trading volume significantly lower at 20,384,102 shares compared to the average of 41,602,469 shares.
• Northland Capital Markets upgraded its rating on SoundHound AI to strong-buy, while Wall Street Zen downgraded it to sell, indicating mixed analyst views on the stock's future performance.
• The company reported a revenue increase of 216.3% year-over-year to $42.68 million, though it missed earnings expectations, recording an earnings per share of ($0.19).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price fell 1.1% during mid-day trading on Friday . The company traded as low as $12.19 and last traded at $12.40. 20,384,102 shares changed hands during trading, a decline of 51% from the average session volume of 41,602,469 shares. The stock had previously closed at $12.53.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SOUN. Northland Capmk raised SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. Wedbush upped their target price on SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. Wall Street Zen cut SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Piper Sandler reaffirmed a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research report on Monday, July 14th. Finally, Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a research report on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $13.36.

SoundHound AI Stock Up 3.6%

The company has a market capitalization of $5.29 billion, a P/E ratio of -20.60 and a beta of 2.57. The firm has a 50-day moving average price of $11.93 and a two-hundred day moving average price of $10.42.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings data 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). SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The business had revenue of $42.68 million during the quarter, compared to the consensus estimate of $32.88 million. During the same period in the prior year, the company posted ($0.11) earnings per share. The firm's revenue was up 216.3% compared to the same quarter last year. SoundHound AI has set its FY 2025 guidance at EPS. On average, analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In related news, COO Michael Zagorsek sold 117,180 shares of the company's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $9.36, for a total value of $1,096,804.80. Following the completion of the transaction, the chief operating officer directly owned 1,346,455 shares in the company, valued at approximately $12,602,818.80. This represents a 8.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Nitesh Sharan sold 111,111 shares of the company's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $1,039,998.96. Following the completion of the transaction, the chief financial officer owned 1,442,900 shares of the company's stock, valued at $13,505,544. The trade was a 7.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 913,317 shares of company stock valued at $8,679,813 in the last ninety days. Company insiders own 9.17% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SOUN. Vanguard Group Inc. raised its stake in shares of SoundHound AI by 9.5% in the first 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 in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of SoundHound AI by 84.2% in the first 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 in the last quarter. HRT Financial LP acquired a new position in shares of SoundHound AI in the second quarter valued at $11,914,000. Goldman Sachs Group Inc. raised its stake in shares of SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after purchasing an additional 1,085,473 shares in the last quarter. Finally, Nuveen LLC acquired a new position in shares of SoundHound AI in the first quarter valued at $7,406,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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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