SoundHound AI (NASDAQ:SOUN) Trading Down 1.1% - What's Next?

Key Points

• SoundHound AI shares experienced a decline of 1.1%, closing at $12.42 after trading as low as $12.05, with a significant drop in trading volume compared to the average.
• Analyst opinions on the stock are mixed, with one firm upgrading it to "buy" and increasing the price target to $16.00, while another firm downgraded it to "sell," reflecting a **consensus rating of "Moderate Buy."**
• For the latest quarter, SoundHound AI reported a revenue of $42.68 million, exceeding expectations, although the company recorded a loss of ($0.19) per share, missing consensus estimates by ($0.13).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares fell 1.1% on Monday . The company traded as low as $12.05 and last traded at $12.42. 12,934,236 shares traded hands during trading, a decline of 69% from the average session volume of 41,128,297 shares. The stock had previously closed at $12.56.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on SOUN. LADENBURG THALM/SH SH raised shares of SoundHound AI from a "neutral" rating to a "buy" rating and raised their price target for the stock from $9.00 to $16.00 in a research report on Monday, August 11th. Wedbush raised their price objective on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a report on Friday, August 8th. HC Wainwright decreased their price target on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research note on Monday, May 12th. Wall Street Zen cut shares of SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Finally, Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price for the company in a report on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $13.36.

SoundHound AI Trading Down 1.4%

The firm's fifty day moving average price is $11.72 and its 200-day moving average price is $10.44. The firm has a market cap of $5.05 billion, a price-to-earnings ratio of -19.69 and a beta of 2.57.

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

Insider Buying and Selling

In related news, VP Majid Emami sold 132,352 shares of the business's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $10.04, for a total value of $1,328,814.08. Following the sale, the vice president directly owned 537,482 shares in the company, valued at $5,396,319.28. The trade was a 19.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keyvan Mohajer sold 254,376 shares of the firm's stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $2,380,959.36. Following the transaction, the chief executive officer directly owned 1,749,790 shares of the company's stock, valued at approximately $16,378,034.40. This trade represents a 12.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 913,317 shares of company stock valued at $8,679,813 in the last 90 days. 9.17% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Virtu Financial LLC purchased a new position in shares of SoundHound AI during the 1st quarter worth about $2,395,000. Carnegie Investment Counsel raised its holdings in shares of SoundHound AI by 8.9% in the 1st quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock worth $8,131,000 after purchasing an additional 87,810 shares during the period. Liontrust Investment Partners LLP acquired a new stake in SoundHound AI during the 1st quarter worth approximately $1,639,000. Thoroughbred Financial Services LLC grew its stake in SoundHound AI by 38.4% during the first quarter. Thoroughbred Financial Services LLC now owns 113,475 shares of the company's stock worth $921,000 after buying an additional 31,500 shares during the period. Finally, Yarbrough Capital LLC acquired a new stake in shares of SoundHound AI in the first quarter worth $1,258,000. Hedge funds and other institutional investors own 19.28% of the company's stock.

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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