SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.2% - Should You Sell?

Key Points

• SoundHound AI's stock price decreased by 2.2%, trading as low as $12.08 before closing at $12.16, with significant volume decline compared to its average.
• Analysts have mixed ratings on SoundHound AI: Wall Street Zen downgraded it to a sell, while Northland Capital gave it a strong-buy rating with a target price of $14.50.
• The company reported a loss of $0.19 per share for the latest quarter, despite revenue soaring 216.3% year-over-year, totaling $42.68 million against expectations of $32.88 million.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded down 2.2% on Thursday . The company traded as low as $12.08 and last traded at $12.16. 13,534,465 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 41,112,152 shares. The stock had previously closed at $12.44.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Wall Street Zen cut shares of SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Northland Capmk upgraded shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 8th. Northland Securities upgraded shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a research note on Friday, August 8th. Piper Sandler reiterated a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a research note on Monday, July 14th. Finally, Wedbush lifted their target price on shares of SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. One investment 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. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $13.36.

SoundHound AI Trading Down 2.1%

The company has a market capitalization of $4.89 billion, a PE ratio of -19.29 and a beta of 2.57. The business's 50-day simple moving average is $11.59 and its 200-day simple moving average is $10.55.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The business had revenue of $42.68 million for the quarter, compared to analysts' expectations of $32.88 million. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The business's quarterly revenue was up 216.3% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. Sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity

In other news, VP Majid Emami sold 132,352 shares of SoundHound AI stock in a transaction that occurred on Tuesday, June 10th. The shares were sold at an average price of $10.04, for a total transaction of $1,328,814.08. Following the completion of the transaction, the vice president directly owned 537,482 shares of the company's stock, valued at $5,396,319.28. The trade was a 19.76% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Nitesh Sharan sold 111,111 shares of SoundHound AI stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the transaction, the chief financial officer directly owned 1,442,900 shares of the company's stock, valued at approximately $13,505,544. This trade represents a 7.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 913,317 shares of company stock worth $8,679,813. 9.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Orion Capital Management LLC purchased a new stake in SoundHound AI in the 4th quarter worth $30,000. Northwestern Mutual Wealth Management Co. increased its holdings in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after acquiring an additional 1,060 shares in the last quarter. Advisors Asset Management Inc. increased its holdings in SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock worth $27,000 after acquiring an additional 1,023 shares in the last quarter. Huntington National Bank increased its holdings in SoundHound AI by 48.8% in the 2nd quarter. Huntington National Bank now owns 3,050 shares of the company's stock worth $33,000 after acquiring an additional 1,000 shares in the last quarter. Finally, Kozak & Associates Inc. increased its holdings in SoundHound AI by 6,249.0% in the 2nd quarter. Kozak & Associates Inc. now owns 3,238 shares of the company's stock worth $35,000 after acquiring an additional 3,187 shares in the last quarter. Hedge funds and other 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.

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