SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.8% - Should You Sell?

Key Points

• SoundHound AI shares fell 1.8% on Friday, trading between $8.09 and $8.17 on heavier-than-usual volume. The stock remains below its 200-day moving average of $9.51.
• Recent analyst commentary has been mixed, with Piper Sandler cutting its price target to $9 and maintaining a neutral rating, while others still rate the stock a buy or strong buy. Overall, the consensus rating is Moderate Buy with an average target price of $14.93.
• The company’s latest earnings showed revenue growth of 51.7% to $44.2 million, but it still missed EPS estimates by $0.01 and remains unprofitable. Insider selling has also been notable, with executives and insiders selling shares over the past 90 days.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) fell 1.8% during trading on Friday . The company traded as low as $8.09 and last traded at $8.17. 32,724,005 shares changed hands during trading, an increase of 19% from the average session volume of 27,532,482 shares. The stock had previously closed at $8.32.

Wall Street Analyst Weigh In

A number of research firms have recently commented on SOUN. Piper Sandler reiterated a "neutral" rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. DA Davidson reissued a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, HC Wainwright decreased their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a report on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, SoundHound AI presently has an average rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Trading Down 1.8%

The firm has a fifty day moving average of $7.58 and a two-hundred day moving average of $9.51. The company has a market cap of $3.45 billion, a PE ratio of -17.38 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The company had revenue of $44.20 million for the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.06) EPS. Sell-side analysts expect that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 52,968 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $359,652.72. Following the completion of the transaction, the chief operating officer 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. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider James Ming Hom sold 31,019 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the insider directly owned 772,364 shares of the company's stock, valued at $5,244,351.56. The trade was a 3.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in shares of SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after purchasing an additional 1,909,868 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock worth $91,543,000 after purchasing an additional 273,097 shares in the last quarter. Morgan Stanley grew its holdings in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock worth $89,606,000 after purchasing an additional 2,917,280 shares in the last quarter. State Street Corp grew its holdings in shares of SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company's stock worth $86,652,000 after purchasing an additional 80,908 shares in the last quarter. Finally, UBS Group AG grew its holdings in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock worth $61,059,000 after purchasing an additional 2,676,707 shares in the last quarter. Hedge funds and other institutional investors 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.

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