SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.9% - Here's Why

Key Points

• Shares of SoundHound AI fell about 3.9% to $7.90 on Tuesday, trading roughly 25.16 million shares (7% below average), with the 50‑day and 200‑day moving averages at $9.27 and $12.64 respectively and a market cap around $3.32 billion.
• Analysts hold a “Moderate Buy” consensus with a mean target of $14.93; notable recent moves include Cantor Fitzgerald upgrading to Overweight and raising its target to $15 while Piper Sandler lowered its target to $9.
• Latest quarter: EPS met estimates at ($0.02) and revenue of $55.06M beat forecasts and rose 59.4% YoY, but the company remains unprofitable (negative net margin and ROE) and insiders have sold heavily (460,922 shares, ~$5.2M in the last 90 days) while owning about 9.17%.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 3.9% on Tuesday . The stock traded as low as $7.88 and last traded at $7.90. Approximately 25,164,074 shares traded hands during mid-day trading, a decline of 7% from the average daily volume of 27,039,322 shares. The stock had previously closed at $8.22.

Analysts Set New Price Targets

Several research analysts have commented on SOUN shares. Cantor Fitzgerald raised shares of SoundHound AI from a "neutral" rating to an "overweight" rating and lifted their price target for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. Zacks Research upgraded shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. Piper Sandler reissued a "neutral" rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a report on Thursday, December 18th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of SoundHound AI in a research report on Friday, January 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Stock Performance

The business's fifty day simple moving average is $9.27 and its 200-day simple moving average is $12.64. The firm has a market capitalization of $3.32 billion, a PE ratio of -157.97 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm had revenue of $55.06 million during the quarter, compared to analyst estimates of $53.88 million. During the same period last year, the firm posted ($0.05) earnings per share. SoundHound AI's revenue for the quarter was up 59.4% compared to the same quarter last year. Sell-side analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, SVP Majid Emami sold 32,741 shares of the stock in a transaction that occurred on Friday, December 26th. The shares were sold at an average price of $10.66, for a total transaction of $349,019.06. Following the completion of the transaction, the senior vice president owned 532,845 shares of the company's stock, valued at approximately $5,680,127.70. This trade represents a 5.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Timothy Stonehocker sold 29,676 shares of the business's stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $12.00, for a total transaction of $356,112.00. Following the sale, the chief technology officer owned 544,179 shares in the company, valued at $6,530,148. This trade represents a 5.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 460,922 shares of company stock valued at $5,199,073. 9.17% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Sound Income Strategies LLC grew its stake in SoundHound AI by 37.3% during the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after buying an additional 575 shares during the last quarter. Investors Research Corp increased its holdings in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company's stock valued at $29,000 after purchasing an additional 700 shares in the last quarter. EP Wealth Advisors LLC boosted its stake in shares of SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after acquiring an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. boosted its position in shares of SoundHound AI by 2.7% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock worth $513,000 after buying an additional 830 shares in the last quarter. Finally, Insigneo Advisory Services LLC grew its position in shares of SoundHound AI by 7.4% in the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company's stock valued at $200,000 after purchasing an additional 858 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.

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.

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