SoundHound AI (NASDAQ:SOUN) Trading Down 1.6% - Here's What Happened

Key Points

• SoundHound AI's stock price declined by 1.6% on Thursday, closing at $18.58 after trading below $18.44 during the session.
• Recent analyst ratings for SoundHound AI include a "buy" rating with price targets ranging from $12.00 to $18.00, while the average consensus target price stands at $14.36.
• The company reported a significant revenue increase of 216.3% year-over-year, despite a quarterly loss of ($0.19) per share, missing analyst expectations.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded down 1.6% on Thursday . The stock traded as low as $18.44 and last traded at $18.58. 44,503,308 shares were traded during mid-day trading, a decline of 4% from the average session volume of 46,555,594 shares. The stock had previously closed at $18.88.

Analyst Upgrades and Downgrades

Several equities analysts have commented on SOUN shares. HC Wainwright reiterated a "buy" rating and issued a $18.00 price objective on shares of SoundHound AI in a report on Wednesday, September 17th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a report on Saturday, September 27th. DA Davidson lifted their target price on shares of SoundHound AI from $15.00 to $17.00 and gave the stock a "buy" rating in a report on Wednesday, September 10th. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. Finally, Piper Sandler reiterated a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research note on Monday, July 14th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $14.36.

SoundHound AI Trading Down 1.6%

The company has a market capitalization of $7.57 billion, a P/E ratio of -29.49 and a beta of 2.60. The stock has a 50 day moving average price of $14.66 and a 200 day moving average price of $11.52.

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 the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The business had revenue of $42.68 million for the quarter, compared to the consensus estimate of $32.88 million. During the same period in the previous year, the business posted ($0.11) EPS. SoundHound AI's revenue was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. On average, research analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 138,523 shares of SoundHound AI stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $2,216,368.00. Following the completion of the transaction, the chief executive officer owned 2,461,267 shares in the company, valued at approximately $39,380,272. The trade was a 5.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Michael Zagorsek sold 69,837 shares of the company's stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $16.00, for a total transaction of $1,117,392.00. Following the completion of the sale, the chief operating officer directly owned 1,860,790 shares of the company's stock, valued at $29,772,640. The trade was a 3.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 495,196 shares of company stock worth $8,068,135 over the last quarter. Corporate insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

Hedge funds and other institutional investors have recently made changes to their positions in the stock. U.S. Capital Wealth Advisors LLC purchased a new stake in shares of SoundHound AI in the third quarter worth about $194,000. Harbour Capital Advisors LLC lifted its stake in SoundHound AI by 35.0% in the 3rd quarter. Harbour Capital Advisors LLC now owns 35,700 shares of the company's stock worth $574,000 after purchasing an additional 9,250 shares in the last quarter. Dynamic Advisor Solutions LLC bought a new position in SoundHound AI in the 3rd quarter valued at $190,000. M.E. Allison & CO. Inc. grew its position in shares of SoundHound AI by 11.8% during the 3rd quarter. M.E. Allison & CO. Inc. now owns 18,900 shares of the company's stock valued at $304,000 after purchasing an additional 2,000 shares in the last quarter. Finally, Accel Wealth Management grew its position in shares of SoundHound AI by 25.7% during the 3rd quarter. Accel Wealth Management now owns 37,872 shares of the company's stock valued at $609,000 after purchasing an additional 7,755 shares in the last quarter. 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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