SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.4% - Time to Sell?

Key Points

• SoundHound AI shares fell 4.4% to about $7.00 during mid-day trading, with volume 41% below the average session level. The stock has a $3.11 billion market capitalization and trades below its 200-day moving average.
• Analyst views remain mixed: the consensus rating is “Moderate Buy” with a $13.60 price target, although some analysts recently lowered targets and maintained neutral or sell ratings.
• The company beat quarterly expectations, reporting a loss of $0.02 per share versus estimates of a $0.13 loss, while revenue rose 45% year over year to $61.9 million. However, SoundHound remains unprofitable, and insiders sold roughly $2.0 million of stock in the past 90 days to cover tax obligations.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price dropped 4.4% during mid-day trading on Monday . The company traded as low as $6.99 and last traded at $7.00. Approximately 17,118,952 shares were traded during mid-day trading, a decline of 41% from the average session volume of 28,773,664 shares. The stock had previously closed at $7.32.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. Wall Street Zen raised SoundHound AI from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 15th. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. DA Davidson cut their price target on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Finally, Piper Sandler reduced their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $13.60.

SoundHound AI Stock Down 4.4%

The firm has a market cap of $3.11 billion, a PE ratio of -18.42 and a beta of 2.64. The business has a 50-day moving average price of $6.71 and a two-hundred day moving average price of $7.41.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The firm had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. During the same period last year, the business posted ($0.19) earnings per share. SoundHound AI's revenue was up 45.0% compared to the same quarter last year. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, CTO Timothy Stonehocker sold 18,802 shares of the company'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 transaction of $140,262.92. Following the sale, the chief technology officer directly owned 502,290 shares in the company, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 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 transaction of $943,988.40. Following the completion of the sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. This trade represents a 6.10% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently modified their holdings of the company. EP Wealth Advisors LLC boosted its stake 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 buying an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. raised its position in SoundHound AI by 2.7% in the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock worth $513,000 after acquiring an additional 830 shares in the last quarter. Parallel Advisors LLC boosted its position in SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after purchasing an additional 960 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in shares of 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 buying an additional 1,060 shares in the last quarter. Finally, Integrated Wealth Concepts LLC lifted its holdings in shares of SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock valued at $119,000 after purchasing an additional 1,201 shares in the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

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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