SoundHound AI (NASDAQ:SOUN) Shares Down 2.6% - Time to Sell?

Key Points

• SoundHound AI's shares fell by 2.6% on Friday, trading at $12.94, with a significant decline in trading volume.
• Analysts have varied opinions on the stock, with a consensus rating of "Moderate Buy" and target prices ranging from $12.00 to $18.00.
• Despite a 216.3% year-over-year increase in quarterly revenue, SoundHound AI reported an earnings miss with a loss of ($0.19) EPS compared to expectations of ($0.06).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded down 2.6% during mid-day trading on Friday . The company traded as low as $12.90 and last traded at $12.94. 15,325,560 shares were traded during trading, a decline of 64% from the average session volume of 42,452,441 shares. The stock had previously closed at $13.29.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Wedbush raised their price target on SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. Northland Securities upgraded SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target on the stock in a research note on Friday, August 8th. LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and raised their price target for the stock from $9.00 to $16.00 in a research note on Monday, August 11th. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 8th. Finally, Wall Street Zen downgraded SoundHound AI from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $13.36.

SoundHound AI Stock Performance

The firm has a fifty day moving average price of $12.36 and a 200 day moving average price of $10.43. The firm has a market capitalization of $5.73 billion, a price-to-earnings ratio of -22.29 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The business had revenue of $42.68 million during the quarter, compared to analyst estimates of $32.88 million. SoundHound AI had a negative net margin of 171.81% and a negative return on equity of 73.13%. The firm's quarterly revenue was up 216.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. Research analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Nitesh Sharan sold 111,111 shares of the business's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $9.36, for a total value of $1,039,998.96. Following the completion of the transaction, the chief financial officer directly owned 1,442,900 shares of the company's stock, valued at $13,505,544. The trade was a 7.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Keyvan Mohajer sold 254,376 shares of SoundHound AI stock in a transaction 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 completion of the sale, the chief executive officer directly owned 1,749,790 shares of the company's stock, valued at approximately $16,378,034.40. This represents a 12.69% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 913,317 shares of company stock valued at $8,679,813. Company insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of SOUN. Vanguard Group Inc. boosted its position in shares of SoundHound AI by 9.5% in the first quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company's stock worth $284,687,000 after buying an additional 3,028,281 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of SoundHound AI by 84.2% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company's stock worth $40,390,000 after acquiring an additional 2,274,105 shares in the last quarter. HRT Financial LP acquired a new position in shares of SoundHound AI in the second quarter worth about $11,914,000. Goldman Sachs Group Inc. lifted its stake in shares of SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock worth $21,434,000 after acquiring an additional 1,085,473 shares in the last quarter. Finally, Nuveen LLC acquired a new position in shares of SoundHound AI in the first quarter worth about $7,406,000. Hedge funds and other institutional investors 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.