SoundHound AI (NASDAQ:SOUN) Trading Down 1.2% - Here's Why

Key Points

• SoundHound AI (SOUN) fell about 1.2% on Tuesday to $8.06 (intraday low $7.90) with ~19.38 million shares traded, roughly 27% below its average session volume.
• Analysts have an overall Moderate Buy consensus with an average price target of $14.93 (ratings: 1 Strong Buy, 5 Buy, 3 Hold, 1 Sell).
• Insiders sold 307,973 shares (~$2.09M) over the last three months including the CEO, while the company reported Q revenue of $55.06M (up 59.4% YoY) and EPS of -$0.02, leaving it with negative net margin and negative ROE.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) fell 1.2% during trading on Tuesday . The company traded as low as $7.90 and last traded at $8.06. 19,378,523 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 26,617,438 shares. The stock had previously closed at $8.16.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on SOUN. Zacks Research raised shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. DA Davidson reissued a "buy" rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. Weiss Ratings restated a "sell (d-)" rating on shares of SoundHound AI in a report on Friday, January 9th. HC Wainwright reduced their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research report on Monday, March 2nd. Finally, Piper Sandler reiterated a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, SoundHound AI presently has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Down 1.2%

The company's 50-day moving average is $7.47 and its two-hundred day moving average is $10.65. The company has a market cap of $3.41 billion, a P/E ratio of -161.17 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. During the same quarter in the previous year, the firm posted ($0.05) earnings per share. The company's revenue for the quarter was up 59.4% on a year-over-year basis. On average, analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Activity

In other news, insider James Ming Hom sold 31,019 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the transaction, the insider owned 772,364 shares in the company, valued at $5,244,351.56. This trade represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Keyvan Mohajer sold 124,510 shares of the company's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the sale, the chief executive officer owned 2,073,777 shares in the company, valued at $14,080,945.83. The trade was a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 307,973 shares of company stock worth $2,091,110. 9.17% of the stock is owned by company insiders.

Institutional Trading of SoundHound AI

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. grew its holdings in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after buying an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC lifted its holdings in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after buying an additional 1,544 shares in the last quarter. Danske Bank A S purchased a new stake in shares of SoundHound AI in the third quarter worth about $26,000. SHP Wealth Management bought a new position in shares of SoundHound AI in the fourth quarter valued at approximately $27,000. Finally, Financial Consulate Inc. purchased a new position in SoundHound AI during the third quarter valued at approximately $32,000. 19.28% of the stock is currently owned by 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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