SoundHound AI (NASDAQ:SOUN) Trading Down 1.6% - Should You Sell?

Key Points

• SoundHound AI's stock fell 1.6% to $15.68, with an increase in trading volume to over 49 million shares during mid-day trading.
• Analysts have mixed ratings on the stock, with one downgrade to "sell" and upgrades projecting a price target of $14.50 and $16.00 from different firms.
• For the latest quarter, the company reported a negative earnings per share of ($0.19), which was below expectations, but revenue increased significantly by 216.3% year-over-year to $42.68 million.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) fell 1.6% on Monday . The stock traded as low as $15.51 and last traded at $15.68. 49,199,228 shares traded hands during mid-day trading, an increase of 8% from the average session volume of 45,743,730 shares. The stock had previously closed at $15.94.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Wall Street Zen downgraded shares of SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Northland Capmk raised SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective on the stock in a report on Friday, August 8th. Wedbush reaffirmed an "outperform" rating and issued a $16.00 target price on shares of SoundHound AI in a research report on Thursday, September 11th. Finally, Oppenheimer began coverage on SoundHound AI in a research report on Thursday, September 11th. They issued a "market perform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $14.36.

SoundHound AI Stock Down 1.6%

The stock has a market capitalization of $6.39 billion, a P/E ratio of -24.89 and a beta of 2.58. The company has a 50 day moving average of $13.54 and a 200-day moving average of $11.07.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results 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). 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 quarter in the previous year, the firm earned ($0.11) EPS. The firm's revenue for the quarter was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. Equities analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity

In other news, CTO Timothy Stonehocker sold 2,247 shares of the company's stock in a transaction that occurred on Wednesday, September 24th. The stock was sold at an average price of $17.90, for a total transaction of $40,221.30. Following the completion of the transaction, the chief technology officer directly owned 677,049 shares of the company's stock, valued at approximately $12,119,177.10. This represents a 0.33% 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 the SEC website. Also, CEO Keyvan Mohajer sold 138,523 shares of the company's stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 2,461,267 shares of the company's stock, valued at $39,380,272. This trade represents a 5.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 495,196 shares of company stock valued at $8,068,135 over the last quarter. Corporate insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the company. Virtu Financial LLC bought a new stake in SoundHound AI in the 1st quarter valued at about $2,395,000. Northern Trust Corp increased its stake in shares of SoundHound AI by 2.5% in the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company's stock valued at $24,190,000 after purchasing an additional 72,766 shares during the period. Carnegie Investment Counsel raised its holdings 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 valued at $8,131,000 after buying an additional 87,810 shares during the last quarter. Liontrust Investment Partners LLP acquired a new position in shares of SoundHound AI during the first quarter worth approximately $1,639,000. Finally, First Manhattan CO. LLC. acquired a new position in shares of SoundHound AI during the first quarter worth approximately $985,000. Institutional investors and hedge funds own 19.28% of the company's stock.

About SoundHound AI

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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