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

Key Points

• SoundHound AI's stock (NASDAQ:SOUN) fell by 2.6% on Friday, closing at $10.07, which is a decrease from a previous close of $10.33.
• Equity analysts have varying price targets for SoundHound AI, with a consensus target of $10.50, while Piper Sandler maintains a "neutral" rating.
• During the last reported quarter, SoundHound AI achieved a revenue of $29.13 million, which was below the projected estimate but represents a significant year-over-year growth of 151.2%.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price dropped 2.6% during trading on Friday . The company traded as low as $9.71 and last traded at $10.07. Approximately 13,026,072 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 39,314,816 shares. The stock had previously closed at $10.33.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of recent analyst reports. Wedbush reduced their target price on SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a report on Friday, May 9th. HC Wainwright reduced their target price on 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 reissued a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a report on Monday, July 14th. Finally, DA Davidson cut their price target on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a research note on Monday, April 14th. Five equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $10.50.

SoundHound AI Trading Down 2.1%

The firm has a market cap of $4.06 billion, a price-to-earnings ratio of -18.38 and a beta of 2.57. The firm has a 50 day moving average price of $10.66 and a 200-day moving average price of $10.64.

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

Insider Activity

In related news, CFO Nitesh Sharan sold 111,111 shares of SoundHound AI stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $1,039,998.96. Following the completion of the sale, the chief financial officer owned 1,442,900 shares in the company, valued at approximately $13,505,544. This trade represents a 7.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Diana Sroka sold 2,800 shares of SoundHound AI stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $9.94, for a total value of $27,832.00. Following the sale, the director owned 153,949 shares of the company's stock, valued at approximately $1,530,253.06. This represents a 1.79% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 961,289 shares of company stock worth $9,247,847 in the last quarter. Corporate insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SOUN. Janney Montgomery Scott LLC grew its holdings in SoundHound AI by 4.0% in the 2nd quarter. Janney Montgomery Scott LLC now owns 23,073 shares of the company's stock valued at $248,000 after buying an additional 880 shares during the period. Russell Investments Group Ltd. grew its holdings in SoundHound AI by 16.4% in the 4th quarter. Russell Investments Group Ltd. now owns 6,598 shares of the company's stock valued at $131,000 after buying an additional 929 shares during the period. Apexium Financial LP grew its holdings in shares of SoundHound AI by 2.8% during the 2nd quarter. Apexium Financial LP now owns 36,698 shares of the company's stock worth $394,000 after purchasing an additional 1,000 shares during the period. Belpointe Asset Management LLC grew its holdings in shares of SoundHound AI by 9.6% during the 2nd quarter. Belpointe Asset Management LLC now owns 11,430 shares of the company's stock worth $123,000 after purchasing an additional 1,000 shares during the period. Finally, CreativeOne Wealth LLC grew its holdings in shares of SoundHound AI by 3.7% during the 4th quarter. CreativeOne Wealth LLC now owns 29,991 shares of the company's stock worth $595,000 after purchasing an additional 1,073 shares during the period. 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.