SoundHound AI (NASDAQ:SOUN) Trading Down 1.7% - Should You Sell?

Key Points

• SoundHound AI's shares decreased by 1.7% to $16.23, with trading volume dropping 60% from the average, reflecting potential investor hesitation.
• Wall Street analysts have mixed ratings on the stock, with one sell, three hold, and five buy ratings, and varying target prices between $12 and $26.
• Despite reporting a revenue increase of 216.3% year-over-year, SoundHound AI posted a loss of $0.19 EPS, missing analysts' expectations significantly.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 1.7% on Thursday . The company traded as low as $15.92 and last traded at $16.23. Approximately 16,359,584 shares were traded during trading, a decline of 60% from the average daily volume of 41,046,605 shares. The stock had previously closed at $16.50.

Wall Street Analysts Forecast Growth

SOUN has been the subject of a number of recent research reports. Wall Street Zen downgraded SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $9.00 to $16.00 in a research report on Monday. Wedbush boosted their target price on SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. Piper Sandler restated a "neutral" rating and set a $12.00 target price on shares of SoundHound AI in a research report on Monday, July 14th. Finally, HC Wainwright dropped their target price on SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, five have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, SoundHound AI currently has an average rating of "Moderate Buy" and an average target price of $13.36.

SoundHound AI Trading Down 3.0%

The business has a 50 day moving average of $11.12 and a 200-day moving average of $10.53. The firm has a market capitalization of $6.43 billion, a P/E ratio of -25.35 and a beta of 2.57.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted 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). SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%. 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 company posted ($0.11) earnings per share. SoundHound AI's revenue for the quarter was up 216.3% compared to the same quarter last year. On average, analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, VP Majid Emami sold 132,352 shares of the stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $10.04, for a total transaction of $1,328,814.08. Following the completion of the transaction, the vice president directly owned 537,482 shares of the company's stock, valued at approximately $5,396,319.28. This represents a 19.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Keyvan Mohajer sold 254,376 shares of the stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $2,380,959.36. Following the transaction, the chief executive officer directly owned 1,749,790 shares of the company's stock, valued at $16,378,034.40. This trade represents a 12.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 913,317 shares of company stock valued at $8,679,813 in the last 90 days. 9.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Virtu Financial LLC acquired a new stake in shares of SoundHound AI in the first quarter valued at approximately $2,395,000. Carnegie Investment Counsel lifted its position in shares of SoundHound AI by 8.9% in 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. Thoroughbred Financial Services LLC lifted its position in shares of SoundHound AI by 38.4% in the first quarter. Thoroughbred Financial Services LLC now owns 113,475 shares of the company's stock valued at $921,000 after buying an additional 31,500 shares during the last quarter. Yarbrough Capital LLC acquired a new stake in shares of SoundHound AI in the first quarter valued at approximately $1,258,000. Finally, Deutsche Bank AG lifted its position in shares of SoundHound AI by 64.2% in the fourth quarter. Deutsche Bank AG now owns 264,559 shares of the company's stock valued at $5,249,000 after buying an additional 103,450 shares during the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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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