SoundHound AI (NASDAQ:SOUN) Trading Down 1.2% - Time to Sell?

Key Points

• SoundHound AI's shares fell 1.2% during trading, currently priced at $15.11 after a previous close of $15.29, with trading volume down 49% from the average.
• Equity analysts have varied ratings on SoundHound AI, with target prices ranging from $12.00 to $18.00, reflecting a consensus rating of Moderate Buy.
• In its latest earnings report, SoundHound AI posted a revenue of $42.68 million, but missed earnings estimates and experienced a negative net margin of 171.81%.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) traded down 1.2% during trading on Tuesday . The stock traded as low as $14.64 and last traded at $15.11. 22,052,007 shares traded hands during mid-day trading, a decline of 49% from the average session volume of 43,217,922 shares. The stock had previously closed at $15.29.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Northland Capmk upgraded shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. Northland Securities upgraded shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target for the company in a research report on Friday, August 8th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI from a "neutral" rating to a "buy" rating and upped their price target for the company from $9.00 to $16.00 in a research report on Monday, August 11th. Oppenheimer assumed coverage on shares of SoundHound AI in a research report on Thursday. They issued a "market perform" rating for the company. Finally, Wedbush reiterated an "outperform" rating and issued a $16.00 price target on shares of SoundHound AI in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, SoundHound AI has a consensus rating of "Moderate Buy" and an average target price of $14.36.

SoundHound AI Stock Down 3.2%

The stock's fifty day simple moving average is $12.67 and its 200-day simple moving average is $10.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its 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). The firm had revenue of $42.68 million during the quarter, compared to analysts' expectations of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. SoundHound AI's revenue for the quarter was up 216.3% on a year-over-year basis. During the same quarter last year, the company posted ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. As a group, equities research analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In other SoundHound AI news, COO Michael Zagorsek sold 117,180 shares of the company's stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $1,096,804.80. Following the transaction, the chief operating officer directly owned 1,346,455 shares in the company, valued at approximately $12,602,818.80. This represents a 8.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider James Ming Hom sold 79,530 shares of the stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $744,400.80. Following the transaction, the insider owned 637,560 shares in the company, valued at approximately $5,967,561.60. The trade was a 11.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 780,965 shares of company stock worth $7,350,999 in the last 90 days. 9.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. EP Wealth Advisors LLC increased its position in SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after purchasing an additional 706 shares in the last quarter. Janney Montgomery Scott LLC increased its position in SoundHound AI by 4.0% during the 2nd quarter. Janney Montgomery Scott LLC now owns 23,073 shares of the company's stock worth $248,000 after purchasing an additional 880 shares in the last quarter. Apexium Financial LP increased its position in SoundHound AI by 2.8% during the 2nd quarter. Apexium Financial LP now owns 36,698 shares of the company's stock worth $394,000 after purchasing an additional 1,000 shares in the last quarter. Belpointe Asset Management LLC increased its position in SoundHound AI by 9.6% during the 2nd quarter. Belpointe Asset Management LLC now owns 11,430 shares of the company's stock worth $123,000 after purchasing an additional 1,000 shares in the last quarter. Finally, Huntington National Bank increased its position in SoundHound AI by 48.8% during the 2nd quarter. Huntington National Bank now owns 3,050 shares of the company's stock worth $33,000 after purchasing an additional 1,000 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other 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.