SoundHound AI (NASDAQ:SOUN) Stock Price Down 7.9% - Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) traded down 7.9% during mid-day trading on Monday . The stock traded as low as $10.20 and last traded at $10.31. 17,982,948 shares were traded during mid-day trading, a decline of 52% from the average session volume of 37,799,915 shares. The stock had previously closed at $11.19.

Analysts Set New Price Targets

A number of brokerages have recently commented on SOUN. Wedbush cut their price objective on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Cantor Fitzgerald upgraded SoundHound AI to a "hold" rating in a research note on Monday, February 24th. DA Davidson cut their price target on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a report on Monday, April 14th. Finally, HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Four research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $10.29.

SoundHound AI Stock Performance

The firm has a market capitalization of $3.85 billion, a price-to-earnings ratio of -26.61 and a beta of 2.71. The firm's 50-day moving average price is $9.09 and its two-hundred day moving average price is $11.62. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.58 and a current ratio of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) EPS for the quarter, topping analysts' consensus estimates of ($0.09) by $0.03. The firm had revenue of $29.13 million during the quarter, compared to analysts' expectations of $30.38 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The company's revenue for the quarter was up 151.2% compared to the same quarter last year. During the same quarter last year, the company earned ($0.07) earnings per share. Sell-side analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In related news, CTO Timothy Stonehocker sold 44,157 shares of the stock in a transaction dated Wednesday, May 14th. The shares were sold at an average price of $12.00, for a total transaction of $529,884.00. Following the completion of the sale, the chief technology officer now owns 723,009 shares in the company, valued at $8,676,108. This trade represents a 5.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider James Ming Hom sold 28,388 shares of the business's stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $9.90, for a total transaction of $281,041.20. Following the completion of the transaction, the insider now owns 689,652 shares in the company, valued at approximately $6,827,554.80. This trade represents a 3.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 548,537 shares of company stock worth $5,567,760 in the last 90 days. 12.28% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. SG Americas Securities LLC raised its position in SoundHound AI by 70.2% in the 4th quarter. SG Americas Securities LLC now owns 195,028 shares of the company's stock valued at $3,869,000 after purchasing an additional 80,448 shares during the last quarter. Janney Montgomery Scott LLC acquired a new stake in shares of SoundHound AI in the fourth quarter valued at $411,000. Mutual Advisors LLC bought a new position in shares of SoundHound AI in the fourth quarter valued at about $320,000. Burr Financial Services LLC bought a new position in shares of SoundHound AI in the fourth quarter valued at about $462,000. Finally, Avior Wealth Management LLC acquired a new position in SoundHound AI during the 4th quarter worth about $64,000. 19.28% of the stock is owned by institutional investors and hedge funds.

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.