SoundHound AI (NASDAQ:SOUN) Shares Down 1.5% - Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 1.5% on Tuesday . The stock traded as low as $9.94 and last traded at $10.12. Approximately 10,509,258 shares were traded during trading, a decline of 72% from the average daily volume of 37,768,236 shares. The stock had previously closed at $10.27.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on SOUN shares. DA Davidson lowered their target price on SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Monday, April 14th. HC Wainwright lowered 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 note on Monday, May 12th. Cantor Fitzgerald upgraded shares of SoundHound AI to a "hold" rating in a research note on Monday, February 24th. Finally, Wedbush decreased their price target 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. Four analysts have rated the stock with a hold rating and three have given a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $10.29.

SoundHound AI Trading Up 1.9%

The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.58 and a current ratio of 2.58. The business's 50 day moving average price is $9.10 and its 200-day moving average price is $11.59. The company has a market cap of $3.88 billion, a price-to-earnings ratio of -26.84 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $29.13 million during the quarter, compared to analyst estimates of $30.38 million. During the same quarter in the prior year, the business posted ($0.07) earnings per share. The company's quarterly revenue was up 151.2% compared to the same quarter last year. On average, research analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insiders Place Their Bets

In related news, VP Majid Emami sold 28,392 shares of the stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $9.90, for a total transaction of $281,080.80. Following the completion of the sale, the vice president now owns 669,834 shares in the company, valued at $6,631,356.60. This trade represents a 4.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider James Ming Hom sold 28,388 shares of the company's stock in a transaction dated Thursday, March 20th. The stock was sold at an average price of $9.90, for a total transaction of $281,041.20. Following the sale, the insider now directly owns 689,652 shares in the company, valued at $6,827,554.80. This represents a 3.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 548,537 shares of company stock worth $5,567,760 over the last three months. 12.28% of the stock is currently owned by corporate insiders.

Institutional Trading of SoundHound AI

Several large investors have recently made changes to their positions in SOUN. Commons Capital LLC grew its holdings in SoundHound AI by 2.7% during the 4th quarter. Commons Capital LLC now owns 27,349 shares of the company's stock worth $543,000 after acquiring an additional 723 shares during the last quarter. Keynote Financial Services LLC grew its stake in shares of SoundHound AI by 4.7% during the fourth quarter. Keynote Financial Services LLC now owns 16,587 shares of the company's stock valued at $329,000 after purchasing an additional 752 shares during the last quarter. Blue Trust Inc. grew its stake in shares of SoundHound AI by 197.6% during the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company's stock valued at $25,000 after purchasing an additional 830 shares during the last quarter. Russell Investments Group Ltd. increased its holdings in shares of SoundHound AI by 16.4% in the fourth quarter. Russell Investments Group Ltd. now owns 6,598 shares of the company's stock valued at $131,000 after purchasing an additional 929 shares in the last quarter. Finally, Creative Financial Designs Inc. ADV raised its position in SoundHound AI by 13.7% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 8,317 shares of the company's stock worth $165,000 after purchasing an additional 1,000 shares during the last quarter. Institutional investors 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.