SoundHound AI (NASDAQ:SOUN) Trading Down 1.4% - Here's What Happened

Key Points

• SoundHound AI's stock experienced a decline of 1.4%, with the last trading price at $17.98, down from a previous close of $18.24.
• Analysts have varying ratings for the stock, with a consensus rating of "Moderate Buy" and a target price averaging $15.50, although HC Wainwright has set a more optimistic target of $26.00.
• Recently, the company's CFO and CEO both sold significant shares of stock, indicating a 6.58% and 5.33% decrease in their respective ownership stakes.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares fell 1.4% during mid-day trading on Friday . The stock traded as low as $17.91 and last traded at $17.98. 28,279,265 shares were traded during trading, a decline of 39% from the average session volume of 46,572,203 shares. The stock had previously closed at $18.24.

Analyst Ratings Changes

Several research firms have recently issued reports on SOUN. Wedbush reissued an "outperform" rating and set a $16.00 target price on shares of SoundHound AI in a report on Thursday, September 11th. HC Wainwright increased their target price on SoundHound AI from $18.00 to $26.00 and gave the stock a "buy" rating in a report on Thursday, October 16th. Weiss Ratings reissued a "sell (d-)" rating on shares of SoundHound AI in a report on Tuesday, October 14th. Wall Street Zen lowered SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, LADENBURG THALM/SH SH raised SoundHound AI from a "neutral" rating to a "buy" rating and increased their target price for the stock from $9.00 to $16.00 in a report on Monday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, SoundHound AI currently has a consensus rating of "Moderate Buy" and an average target price of $15.50.

SoundHound AI Stock Down 1.4%

The firm has a 50 day moving average of $15.86 and a two-hundred day moving average of $12.26. The firm has a market capitalization of $7.33 billion, a price-to-earnings ratio of -28.54 and a beta of 2.60.

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

Insider Transactions at SoundHound AI

In other SoundHound AI news, CFO Nitesh Sharan sold 126,596 shares of the stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $16.58, for a total value of $2,098,961.68. Following the completion of the transaction, the chief financial officer directly owned 1,796,304 shares in the company, valued at approximately $29,782,720.32. This trade represents a 6.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Keyvan Mohajer sold 138,523 shares of the stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $2,216,368.00. Following the completion of the transaction, the chief executive officer owned 2,461,267 shares of the company's stock, valued at $39,380,272. This represents a 5.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 785,917 shares of company stock valued at $13,955,610. 9.17% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently bought and sold shares of the company. Virtu Financial LLC bought a new position in shares of SoundHound AI during the first quarter worth about $2,395,000. Northern Trust Corp raised its position in shares of SoundHound AI by 2.5% during the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock worth $24,190,000 after acquiring an additional 72,766 shares during the last quarter. Carnegie Investment Counsel raised its position in shares of SoundHound AI by 8.9% during the first quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company's stock worth $8,131,000 after acquiring an additional 87,810 shares during the last quarter. Liontrust Investment Partners LLP bought a new position in shares of SoundHound AI during the first quarter worth about $1,639,000. Finally, First Manhattan CO. LLC. bought a new position in shares of SoundHound AI during the first quarter worth about $985,000. 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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