SoundHound AI (NASDAQ:SOUN) Trading Down 2.9% - Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares fell 2.9% during mid-day trading on Friday . The company traded as low as $11.89 and last traded at $11.94. 11,404,832 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 40,617,665 shares. The stock had previously closed at $12.29.

Analyst Upgrades and Downgrades

Several equities analysts have commented on SOUN shares. DA Davidson dropped their target price on SoundHound AI from $13.00 to $10.00 and set a "buy" rating for the company in a research report on Monday, April 14th. Piper Sandler began coverage on shares of SoundHound AI in a report on Tuesday, May 27th. They issued an "overweight" rating and a $12.00 price objective for the company. HC Wainwright cut their target price on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. Finally, Wedbush decreased their price target on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Four research analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $10.50.

SoundHound AI Price Performance

The firm has a market capitalization of $4.82 billion, a P/E ratio of -21.81 and a beta of 2.59. The company has a fifty day moving average of $10.21 and a 200 day moving average of $11.44.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.09) by $0.03. SoundHound AI had a negative net margin of 184.34% and a negative return on equity of 68.55%. The company had revenue of $29.13 million for the quarter, compared to analyst estimates of $30.38 million. During the same period in the prior year, the firm posted ($0.07) EPS. The company's quarterly revenue was up 151.2% on a year-over-year basis. On average, sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, CFO Nitesh Sharan sold 111,111 shares of the business's stock in a transaction that occurred 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 transaction, the chief financial officer directly owned 1,442,900 shares of the company's stock, valued at approximately $13,505,544. The trade was a 7.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael Zagorsek sold 117,180 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 transaction of $1,096,804.80. Following the completion of the sale, the chief operating officer owned 1,346,455 shares of the company's stock, valued at $12,602,818.80. This represents a 8.01% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 961,289 shares of company stock worth $9,247,847. Corporate insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently made changes to their positions in the stock. Charles Schwab Investment Management Inc. increased its position in SoundHound AI by 5.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,725,693 shares of the company's stock valued at $54,078,000 after buying an additional 143,487 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in SoundHound AI in the fourth quarter valued at approximately $6,830,000. Larson Financial Group LLC increased its holdings in shares of SoundHound AI by 76.9% during the fourth quarter. Larson Financial Group LLC now owns 4,068 shares of the company's stock valued at $81,000 after acquiring an additional 1,768 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in shares of SoundHound AI by 56.5% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 56,572 shares of the company's stock valued at $1,122,000 after acquiring an additional 20,434 shares in the last quarter. Finally, Moors & Cabot Inc. raised its position in shares of SoundHound AI by 14.0% during the fourth quarter. Moors & Cabot Inc. now owns 14,572 shares of the company's stock worth $289,000 after purchasing an additional 1,791 shares during the period. Institutional investors and hedge funds own 19.28% of the company's stock.

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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