SoundHound AI (NASDAQ:SOUN) Shares Down 2.7% - Here's Why

Key Points

• SoundHound AI stock experienced a 2.7% decline, closing at $15.56 with trading volume down 43% from the average.
• Analyst ratings show a consensus of "Moderate Buy" with a target price averaging $13.36, while some firms have upgraded it to "buy" or "strong buy."
• In recent insider trading, COO Michael Zagorsek and another insider sold a total of 196,710 shares, representing significant decreases in their ownership stakes.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares fell 2.7% during mid-day trading on Wednesday . The stock traded as low as $15.62 and last traded at $15.56. 23,299,281 shares were traded during trading, a decline of 43% from the average session volume of 40,980,508 shares. The stock had previously closed at $15.98.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SOUN. Northland Securities raised shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target for the company in a report on Friday, August 8th. Northland Capmk raised shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. Wedbush boosted their price target on shares of SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a report on Friday, August 8th. LADENBURG THALM/SH SH raised shares of SoundHound AI from a "neutral" rating to a "buy" rating and boosted their price target for the company from $9.00 to $16.00 in a report on Monday. Finally, Piper Sandler reissued a "neutral" rating and set a $12.00 price target on shares of SoundHound AI in a report on Monday, July 14th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating, five have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, SoundHound AI currently has a consensus rating of "Moderate Buy" and an average price target of $13.36.

SoundHound AI Price Performance

The firm has a market cap of $6.52 billion, a price-to-earnings ratio of -25.71 and a beta of 2.57. The firm's fifty day moving average is $11.12 and its two-hundred day moving average is $10.53.

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

Insider Buying and Selling

In other SoundHound AI news, Director Diana Sroka sold 2,800 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $9.94, for a total value of $27,832.00. Following the completion of the sale, the director directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Majid Emami sold 60,295 shares of the company's stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $10.00, for a total transaction of $602,950.00. Following the completion of the sale, the vice president directly owned 477,657 shares of the company's stock, valued at $4,776,570. The trade was a 11.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 913,317 shares of company stock worth $8,679,813 in the last ninety days. Insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Nebula Research & Development LLC lifted its holdings in SoundHound AI by 9.7% in the 2nd quarter. Nebula Research & Development LLC now owns 67,263 shares of the company's stock valued at $722,000 after acquiring an additional 5,948 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in SoundHound AI by 5.1% in the 2nd quarter. NewEdge Advisors LLC now owns 43,136 shares of the company's stock valued at $463,000 after acquiring an additional 2,106 shares during the last quarter. State Street Corp lifted its holdings in SoundHound AI by 9.1% in the 2nd quarter. State Street Corp now owns 8,476,348 shares of the company's stock valued at $90,951,000 after acquiring an additional 708,369 shares during the last quarter. Sassicaia Capital Advisers LLC acquired a new stake in SoundHound AI during the 2nd quarter worth about $2,869,000. Finally, First Trust Advisors LP raised its holdings in SoundHound AI by 37.6% during the 2nd quarter. First Trust Advisors LP now owns 426,054 shares of the company's stock worth $4,572,000 after buying an additional 116,477 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

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.