SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.2% - Here's Why

Key Points

• SoundHound AI shares fell about 1.2% to $6.70 on Monday, with ~14.14 million shares traded—roughly 46% below its average daily volume.
• Analysts give the stock a consensus rating of Moderate Buy with an average price target of $14.93, amid mixed recent calls (Cantor Fitzgerald upgraded to Overweight, while HC Wainwright cut its target).
• The latest quarter saw EPS meet estimates at ($0.02) and revenue beat at $55.06 million (up 59.4% YoY), but the company remains unprofitable; insiders have sold ~337,649 shares (~$2.45M) over the past 90 days while owning about 9.17% of the stock.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares dropped 1.2% during trading on Monday . The stock traded as low as $6.66 and last traded at $6.70. Approximately 14,144,251 shares traded hands during trading, a decline of 46% from the average daily volume of 26,365,779 shares. The stock had previously closed at $6.78.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Cantor Fitzgerald upgraded SoundHound AI from a "neutral" rating to an "overweight" rating and upped their target price for the stock from $13.00 to $15.00 in a report on Friday, December 12th. DA Davidson set a $14.00 target price on shares of SoundHound AI in a research report on Thursday, January 8th. HC Wainwright reduced their price target on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a report on Monday, March 2nd. Zacks Research raised shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Finally, Piper Sandler reiterated a "neutral" rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, SoundHound AI currently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Performance

The business has a 50 day moving average of $7.78 and a two-hundred day moving average of $11.75. The stock has a market capitalization of $2.83 billion, a PE ratio of -133.97 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.02). The company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm's quarterly revenue was up 59.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.05) earnings per share. On average, equities analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, CFO Nitesh Sharan sold 44,027 shares of the business's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the transaction, the chief financial officer owned 1,661,121 shares in the company, valued at $11,279,011.59. The trade was a 2.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Michael Zagorsek sold 52,968 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $359,652.72. Following the sale, the chief operating officer directly owned 1,734,491 shares of the company's stock, valued at $11,777,193.89. The trade was a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 337,649 shares of company stock worth $2,447,222. 9.17% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

A number of institutional investors have recently made changes to their positions in the business. Sound Income Strategies LLC increased its position in SoundHound AI by 37.3% during the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock valued at $34,000 after buying an additional 575 shares in the last quarter. Investors Research Corp grew its stake in shares of SoundHound AI by 62.4% during the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after acquiring an additional 700 shares during the last quarter. EP Wealth Advisors LLC grew its stake in shares of SoundHound AI by 5.3% during the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after acquiring an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. increased its holdings in shares of SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock valued at $513,000 after acquiring an additional 830 shares in the last quarter. Finally, Insigneo Advisory Services LLC increased its holdings in shares of SoundHound AI by 7.4% during the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company's stock valued at $200,000 after acquiring an additional 858 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.