SoundHound AI (NASDAQ:SOUN) Trading Down 1.7% - Time to Sell?

Key Points

• SounHound AI's stock price dropped 1.7% to $10.62, with trading volume down 74% compared to its average, indicating reduced investor activity.
• Analyst ratings for SoundHound AI show a mix of "buy" and "hold" recommendations with target prices ranging from $10 to $18, suggesting uncertainty in future performance.
• The company reported a revenue increase of 151.2% year-over-year, but still fell short of analyst expectations, posting a quarterly revenue of $29.13 million against a forecast of $30.38 million.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 1.7% on Thursday . The stock traded as low as $10.63 and last traded at $10.62. Approximately 10,022,658 shares were traded during trading, a decline of 74% from the average daily volume of 38,954,305 shares. The stock had previously closed at $10.80.

Analyst Ratings Changes

A number of research analysts have recently issued reports on SOUN shares. DA Davidson lowered their price target on SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Monday, April 14th. HC Wainwright reduced their target price on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a report on Monday, May 12th. Piper Sandler restated a "neutral" rating and set a $12.00 price objective on shares of SoundHound AI in a research report on Monday, July 14th. Finally, Wedbush dropped their target price on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a report on Friday, May 9th. Five equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, SoundHound AI currently has an average rating of "Hold" and an average target price of $10.50.

SoundHound AI Trading Down 0.7%

The stock has a market capitalization of $4.31 billion, a PE ratio of -19.49 and a beta of 2.57. The business's 50 day moving average is $10.68 and its 200 day moving average is $10.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) EPS for the quarter, topping analysts' consensus estimates of ($0.09) by $0.03. SoundHound AI had a negative return on equity of 68.55% and a negative net margin of 184.34%. The company had revenue of $29.13 million during the quarter, compared to analysts' expectations of $30.38 million. During the same quarter in the previous year, the firm posted ($0.07) EPS. The firm's revenue was up 151.2% compared to the same quarter last year. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Activity

In other SoundHound AI news, CTO Timothy Stonehocker sold 2,981 shares of the company's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $9.68, for a total transaction of $28,856.08. Following the completion of the transaction, the chief technology officer owned 716,866 shares in the company, valued at approximately $6,939,262.88. This represents a 0.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Diana Sroka sold 2,800 shares of SoundHound AI stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $9.94, for a total value of $27,832.00. Following the transaction, the director owned 153,949 shares of the company's stock, valued at $1,530,253.06. This represents a 1.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 961,289 shares of company stock valued at $9,247,847 in the last quarter. Insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently modified their holdings of the stock. Carnegie Investment Counsel increased its stake in 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. Yarbrough Capital LLC acquired a new stake in SoundHound AI during the 1st quarter worth approximately $1,258,000. Deutsche Bank AG lifted its position in SoundHound AI by 64.2% during 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 in the last quarter. Victory Capital Management Inc. grew its stake in SoundHound AI by 308.4% during the first quarter. Victory Capital Management Inc. now owns 163,713 shares of the company's stock worth $1,329,000 after buying an additional 123,623 shares during the period. Finally, Thoroughbred Financial Services LLC raised its stake in shares of SoundHound AI by 38.4% in the 1st quarter. Thoroughbred Financial Services LLC now owns 113,475 shares of the company's stock valued at $921,000 after acquiring an additional 31,500 shares during the period. 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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