SoundHound AI (NASDAQ:SOUN) Trading Down 1.8% - What's Next?

Key Points

• SoundHound AI shares fell 1.8% on Wednesday, trading as low as $6.22 and last changing hands at $6.323 after about 28.1 million shares traded, slightly above average volume.
• Analyst sentiment remains mixed but generally constructive: the stock has a Moderate Buy consensus with a $14.93 target, even though Piper Sandler cut its target to $9 and Weiss Ratings reiterated a sell rating.
• The company’s latest earnings showed revenue growth of 51.7% year over year to $44.2 million, but it still posted a quarterly EPS loss and insiders recently sold shares, including notable sales by an executive and the CTO.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) fell 1.8% during trading on Wednesday . The company traded as low as $6.22 and last traded at $6.3230. Approximately 28,131,715 shares traded hands during mid-day trading, an increase of 3% from the average session volume of 27,378,916 shares. The stock had previously closed at $6.44.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on SOUN. Piper Sandler reaffirmed a "neutral" rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Weiss Ratings reissued a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. HC Wainwright decreased their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a report on Monday, March 2nd. Finally, DA Davidson reaffirmed a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

SoundHound AI Price Performance

The business has a fifty day simple moving average of $7.96 and a two-hundred day simple moving average of $8.68. The company has a market cap of $2.74 billion, a PE ratio of -13.45 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The firm's revenue was up 51.7% compared to the same quarter last year. During the same period last year, the business posted ($0.06) EPS. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, insider James Ming Hom sold 28,843 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the transaction, the insider directly owned 743,521 shares in the company, valued at approximately $5,546,666.66. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $140,262.92. Following the sale, the chief technology officer directly owned 502,290 shares of the company's stock, valued at approximately $3,747,083.40. The trade was a 3.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 268,022 shares of company stock valued at $1,999,444 over the last three months. Corporate insiders own 8.84% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors have recently bought and sold shares of SOUN. Vanguard Group Inc. boosted its position in shares of SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after purchasing an additional 1,909,868 shares in the last quarter. Rakuten Securities Inc. increased its position in SoundHound AI by 877.9% during the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company's stock valued at $3,326,000 after buying an additional 299,492 shares in the last quarter. Clear Street Group Inc. acquired a new position in SoundHound AI during the 3rd quarter valued at about $12,944,000. UBS Group AG raised its stake in SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after buying an additional 2,676,707 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in SoundHound AI by 140.5% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company's stock valued at $2,826,000 after buying an additional 155,743 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

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