SoundHound AI (NASDAQ:SOUN) Stock Price Down 5.9% - What's Next?

Key Points

• SoundHound AI shares fell 5.9% to about $7.00, with trading volume significantly below average. The stock remains highly volatile, with a beta of 2.64.
• Analysts maintain a consensus “Moderate Buy” rating and an average price target of $13.60, despite recent target cuts from Piper Sandler and DA Davidson.
• The company beat quarterly expectations, reporting a loss of $0.02 per share versus the expected $0.13 loss and revenue of $61.9 million, up 45% year over year. Insiders sold roughly $2.0 million of shares last quarter, primarily to cover tax obligations from vested equity awards.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) fell 5.9% on Monday . The company traded as low as $7.01 and last traded at $6.9950. Approximately 7,903,870 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 28,722,377 shares. The stock had previously closed at $7.43.

Wall Street Analysts Forecast Growth

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

SoundHound AI Stock Down 5.2%

The firm has a market capitalization of $3.13 billion, a P/E ratio of -18.51 and a beta of 2.64. The company's 50 day moving average is $6.71 and its 200-day moving average is $7.48.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same quarter in the prior year, the company earned ($0.19) earnings per share. The company's quarterly revenue was up 45.0% on a year-over-year basis. On average, analysts predict that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI news, SVP Majid Emami sold 28,843 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the transaction, the senior vice president owned 472,983 shares in the company, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 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 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 transaction, the chief executive officer directly owned 1,947,237 shares in the company, valued at $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 268,022 shares of company stock worth $1,999,444 over the last quarter. Corporate insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently added to or reduced their stakes in the business. Danske Bank A S purchased a new stake in shares of SoundHound AI during the third quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. raised its position in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC lifted its position in shares of SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after acquiring an additional 1,544 shares in the last quarter. SHP Wealth Management purchased a new position in SoundHound AI during the 4th quarter valued at about $27,000. Finally, Parallel Advisors LLC increased its holdings in SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after acquiring an additional 960 shares during the period. Institutional investors own 19.28% of the company's stock.

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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