SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.3% - Should You Sell?

Key Points

• Shares fell 4.3% mid-day to $7.71 with ~22.99M shares traded (about 13% below average); the stock is below its 200‑day moving average ($10.58) but near its 50‑day average ($7.48) and has a market cap of $3.26B.
• Analyst consensus is a "Moderate Buy" with an average price target of $14.93, reflecting a mix of 1 Strong Buy, 5 Buy, 3 Hold and 1 Sell ratings.
• Revenue is growing but the company remains unprofitable: quarterly revenue beat at $55.06M (+59.4% YoY) while EPS was ($0.02) (in line with estimates) and net margin was -8.71%; insiders sold ~307,973 shares (~$2.09M) in the last 90 days.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 4.3% during mid-day trading on Wednesday . The stock traded as low as $7.58 and last traded at $7.71. Approximately 22,992,557 shares changed hands during mid-day trading, a decline of 13% from the average daily volume of 26,574,857 shares. The stock had previously closed at $8.06.

Wall Street Analysts Forecast Growth

SOUN has been the topic of several recent analyst reports. DA Davidson restated a "buy" rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Zacks Research upgraded shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. Piper Sandler restated a "neutral" rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. HC Wainwright lowered their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research note on Monday, March 2nd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of SoundHound AI in a research note on Friday, January 9th. One 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 given a Sell rating to the company's stock. According to data from MarketBeat, SoundHound AI has a consensus rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Stock Performance

The firm has a market cap of $3.26 billion, a P/E ratio of -154.17 and a beta of 2.71. The firm's fifty day moving average is $7.48 and its 200 day moving average is $10.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02). The business had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. SoundHound AI's revenue was up 59.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.05) EPS. As a group, equities research analysts forecast that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In related news, 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 transaction of $210,619.01. Following the completion of the sale, the insider owned 772,364 shares of the company's stock, valued at approximately $5,244,351.56. The trade was a 3.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Nitesh Sharan sold 44,027 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 $298,943.33. Following the sale, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at $11,279,011.59. The trade was a 2.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 307,973 shares of company stock worth $2,091,110 in the last ninety days. Insiders own 8.84% of the company's stock.

Institutional Trading of SoundHound AI

A number of institutional investors have recently bought and sold shares of SOUN. Kieckhefer Group LLC increased its position in SoundHound AI by 47.2% in the 3rd quarter. Kieckhefer Group LLC now owns 259,000 shares of the company's stock valued at $4,165,000 after acquiring an additional 83,000 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its position in SoundHound AI by 252.8% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 218,868 shares of the company's stock valued at $3,519,000 after acquiring an additional 156,835 shares during the period. Rakuten Securities Inc. increased its position in shares of SoundHound AI by 877.9% during the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company's stock worth $3,326,000 after buying an additional 299,492 shares during the period. Nisa Investment Advisors LLC increased its position in shares of SoundHound AI by 97.7% during the third quarter. Nisa Investment Advisors LLC now owns 90,041 shares of the company's stock worth $1,448,000 after buying an additional 44,496 shares during the period. Finally, Clear Street Group Inc. bought a new position in SoundHound AI during the third quarter worth $12,944,000. 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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