SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.9% - Here's What Happened

Key Points

• SoundHound AI shares fell 2.9% on Thursday, trading as low as $6.24 amid heavier-than-normal volume before closing near $6.31.
• Recent analyst views remain mixed, but the stock still carries a Moderate Buy consensus with an average price target of $14.93, well above the current share price.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a loss and insiders recently sold shares, which may have added to investor caution.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price was down 2.9% during mid-day trading on Thursday . The company traded as low as $6.24 and last traded at $6.31. Approximately 33,951,943 shares changed hands during mid-day trading, an increase of 24% from the average session volume of 27,477,693 shares. The stock had previously closed at $6.50.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. DA Davidson reissued a "buy" rating and issued a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, SoundHound AI has a consensus rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Price Performance

The stock has a market capitalization of $2.73 billion, a price-to-earnings ratio of -13.43 and a beta of 2.62. The company has a 50-day simple moving average of $7.49 and a two-hundred day simple moving average of $8.12.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million for 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 business's revenue was up 51.7% compared to the same quarter last year. During the same period last year, the firm posted ($0.06) EPS. Research analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Activity

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the sale, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. This trade represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the insider directly owned 743,521 shares in the company, valued at approximately $5,546,666.66. This trade represents a 3.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 268,022 shares of company stock worth $1,999,444 over the last three months. Insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB increased its position in SoundHound AI by 17.4% in the 2nd quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company's stock valued at $802,000 after acquiring an additional 18,400 shares during the period. Focus Financial Network Inc. raised its stake in SoundHound AI by 21.4% during the 2nd quarter. Focus Financial Network Inc. now owns 48,229 shares of the company's stock valued at $312,000 after acquiring an additional 8,516 shares in the last quarter. IFC & Insurance Marketing Inc. boosted its position in SoundHound AI by 17.9% during the 2nd quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company's stock worth $273,000 after acquiring an additional 6,427 shares during the period. Hennion & Walsh Asset Management Inc. boosted its position in SoundHound AI by 19.2% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company's stock worth $768,000 after acquiring an additional 19,133 shares during the period. Finally, Empowered Funds LLC grew its stake in shares of SoundHound AI by 19.6% in the first quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock worth $95,000 after purchasing an additional 2,277 shares in the last quarter. 19.28% of the stock is owned by institutional investors.

About SoundHound AI

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.