SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.6% - Here's What Happened

Key Points

• SoundHound AI shares fell by 2.6% during mid-day trading, closing at $17.76, significantly lower than the previous close of $18.23.
• Recent upgrades from various research firms have set target prices for SoundHound AI between $16.00 and $26.00, with a general rating of "Moderate Buy."
• The company reported a revenue increase of 216.3% year-over-year, despite missing earnings estimates with a reported EPS of (-$0.19).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares fell 2.6% during mid-day trading on Wednesday . The company traded as low as $16.56 and last traded at $17.76. 43,254,786 shares changed hands during trading, a decline of 7% from the average session volume of 46,751,582 shares. The stock had previously closed at $18.23.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on SOUN. HC Wainwright boosted their price objective on SoundHound AI from $18.00 to $26.00 and gave the company a "buy" rating in a report on Thursday, October 16th. LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and upped their target price for the stock from $9.00 to $16.00 in a report on Monday, August 11th. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a report on Friday, August 8th. Finally, Wedbush reiterated an "outperform" rating and issued a $16.00 target price on shares of SoundHound AI in a report on Thursday, September 11th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $15.50.

SoundHound AI Stock Performance

The stock has a market capitalization of $7.24 billion, a PE ratio of -28.19 and a beta of 2.60. The business has a 50 day moving average of $15.80 and a two-hundred day moving average of $12.15.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.13). The company 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 company's revenue for the quarter was up 216.3% compared to the same quarter last year. During the same quarter last year, the company earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. On average, equities analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity

In related news, VP Majid Emami sold 41,167 shares of the company's stock in a transaction dated Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total transaction of $823,340.00. Following the transaction, the vice president directly owned 608,186 shares of the company's stock, valued at $12,163,720. This represents a 6.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Keyvan Mohajer sold 118,654 shares of the company's stock in a transaction dated Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $2,373,080.00. Following the transaction, the chief executive officer directly owned 2,342,613 shares in the company, valued at $46,852,260. This represents a 4.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 785,917 shares of company stock worth $13,955,610 over the last ninety days. 9.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes 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 increased its holdings in shares of SoundHound AI by 62.4% in the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock valued at $29,000 after purchasing an additional 700 shares during the period. EP Wealth Advisors LLC increased its holdings in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock valued at $151,000 after purchasing an additional 706 shares during the period. Janney Montgomery Scott LLC increased its holdings in shares of SoundHound AI by 4.0% in the second quarter. Janney Montgomery Scott LLC now owns 23,073 shares of the company's stock valued at $248,000 after purchasing an additional 880 shares during the period. Finally, Apexium Financial LP increased its holdings in shares of SoundHound AI by 2.8% in the second quarter. Apexium Financial LP now owns 36,698 shares of the company's stock valued at $394,000 after purchasing an additional 1,000 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

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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