SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.5% - Time to Sell?

Key Points

• SoundHound AI shares fell 1.5% on Thursday, trading between $8.17 and $8.32 on volume that was below its recent average.
• Analysts remain mixed but generally constructive, with the stock carrying a Moderate Buy consensus and an average target price of $14.93, though some firms have recently cut targets.
• In its latest earnings report, SoundHound posted revenue of $44.2 million a 51.7% year-over-year increase, but still missed earnings expectations and continues to report losses.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 1.5% on Thursday . The company traded as low as $8.17 and last traded at $8.32. Approximately 22,530,434 shares changed hands during trading, a decline of 18% from the average daily volume of 27,453,338 shares. The stock had previously closed at $8.45.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of recent analyst reports. HC Wainwright dropped their price target on 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 SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. DA Davidson reaffirmed a "buy" rating and set a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. Finally, Piper Sandler reissued a "neutral" rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One equities research 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 assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, SoundHound AI presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Trading Down 1.5%

The company has a 50 day moving average price of $7.57 and a 200 day moving average price of $9.57. The company has a market capitalization of $3.52 billion, a price-to-earnings ratio of -17.70 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The firm's quarterly revenue was up 51.7% on a year-over-year basis. During the same period last year, the business posted ($0.06) earnings per share. Equities analysts predict that SoundHound AI, Inc. will post -0.34 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Michael Zagorsek sold 52,968 shares of the firm's stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the transaction, the chief operating officer directly owned 1,734,491 shares in the company, valued at $11,777,193.89. This trade represents a 2.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Keyvan Mohajer sold 124,510 shares of the firm's stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $845,422.90. Following the completion of the transaction, the chief executive officer owned 2,073,777 shares in the company, valued at $14,080,945.83. This represents a 5.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 307,973 shares of company stock worth $2,091,110 over the last three months. Insiders own 8.84% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Amundi boosted its position in shares of SoundHound AI by 112.4% in the 1st quarter. Amundi now owns 24,046 shares of the company's stock worth $165,000 after purchasing an additional 12,725 shares during the last quarter. California State Teachers Retirement System boosted its position in shares of SoundHound AI by 25.0% in the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after purchasing an additional 87,998 shares during the last quarter. Empowered Funds LLC boosted its position in shares of SoundHound AI by 19.6% in the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock worth $95,000 after purchasing an additional 2,277 shares during the last quarter. Quantinno Capital Management LP boosted its position in shares of SoundHound AI by 85.7% in the 1st quarter. Quantinno Capital Management LP now owns 84,594 shares of the company's stock worth $581,000 after purchasing an additional 39,028 shares during the last quarter. Finally, Themes Management Co LLC boosted its position in shares of SoundHound AI by 86.5% in the 1st quarter. Themes Management Co LLC now owns 191,444 shares of the company's stock worth $1,315,000 after purchasing an additional 88,820 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors.

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.

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