SoundHound AI (NASDAQ:SOUN) Stock Price Down 6.6% - Here's Why

Key Points

• SoundHound AI's stock price dropped by 6.6% to $17.36, with trading volume exceeding the average by 19%.
• Analysts have varying views on the stock, with price targets ranging from $12.00 to $17.00, and a consensus rating of "Moderate Buy".
• The company reported a significant quarterly revenue increase of 216.3% year-over-year, despite missing earnings expectations by ($0.13) per share.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded down 6.6% during mid-day trading on Friday . The stock traded as low as $17.32 and last traded at $17.36. 55,256,910 shares changed hands during trading, an increase of 19% from the average session volume of 46,610,766 shares. The stock had previously closed at $18.58.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. DA Davidson upped their price target on SoundHound AI from $15.00 to $17.00 and gave the stock a "buy" rating in a research report on Wednesday, September 10th. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 price target on shares of SoundHound AI in a report on Monday, July 14th. Wall Street Zen lowered shares of SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Northland Capmk raised shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 8th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a report on Saturday, September 27th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $14.36.

SoundHound AI Price Performance

The business's 50 day moving average price is $14.66 and its 200-day moving average price is $11.52. The firm has a market capitalization of $7.08 billion, a price-to-earnings ratio of -27.56 and a beta of 2.60.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The business had revenue of $42.68 million during the quarter, compared to analyst estimates of $32.88 million. During the same quarter in the prior year, the company earned ($0.11) earnings per share. The firm's revenue for the quarter was up 216.3% compared to the same quarter last year. SoundHound AI has set its FY 2025 guidance at EPS. As a group, analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In other news, insider James Ming Hom sold 42,119 shares of the business's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $673,904.00. Following the completion of the sale, the insider owned 845,441 shares of the company's stock, valued at approximately $13,527,056. The trade was a 4.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Nitesh Sharan sold 126,596 shares of SoundHound AI stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $16.58, for a total transaction of $2,098,961.68. Following the completion of the transaction, the chief financial officer directly owned 1,796,304 shares of the company's stock, valued at $29,782,720.32. This trade represents a 6.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 495,196 shares of company stock valued at $8,068,135 over the last 90 days. 9.17% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. raised its holdings 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 purchasing an additional 1,060 shares in the last quarter. Advisors Asset Management Inc. raised its holdings in shares of SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock worth $27,000 after purchasing an additional 1,023 shares in the last quarter. Investors Research Corp raised its holdings in shares of SoundHound AI by 62.4% during the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock valued at $29,000 after acquiring an additional 700 shares during the period. AlphaQuest LLC acquired a new stake in shares of SoundHound AI during the first quarter valued at approximately $32,000. Finally, Huntington National Bank raised its holdings in shares of SoundHound AI by 48.8% during the second quarter. Huntington National Bank now owns 3,050 shares of the company's stock valued at $33,000 after acquiring an additional 1,000 shares during the period. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.

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