SoundHound AI (NASDAQ:SOUN) Shares Down 3% - Here's Why

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price traded down 3% during mid-day trading on Friday . The stock traded as low as $9.99 and last traded at $10.22. 10,291,500 shares changed hands during mid-day trading, a decline of 74% from the average session volume of 39,816,781 shares. The stock had previously closed at $10.53.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. DA Davidson lowered their price objective on shares of 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 assumed coverage on shares of SoundHound AI in a research report on Tuesday. They issued an "overweight" rating and a $12.00 price objective for the company. Wedbush lowered their price objective 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. HC Wainwright lowered their price objective on shares of SoundHound AI from $26.00 to $18.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Finally, Cantor Fitzgerald raised shares of SoundHound AI to a "hold" rating in a research report on Monday, February 24th. Four investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, SoundHound AI presently has an average rating of "Moderate Buy" and an average target price of $10.50.

SoundHound AI Price Performance

The firm's 50-day moving average price is $9.14 and its two-hundred day moving average price is $11.76. The stock has a market cap of $4.06 billion, a PE ratio of -28.06 and a beta of 2.71. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.03. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm had revenue of $29.13 million during the quarter, compared to analysts' expectations of $30.38 million. During the same quarter in the prior year, the company earned ($0.07) EPS. The company's revenue was up 151.2% compared to the same quarter last year. On average, equities analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider James Ming Hom sold 28,388 shares of the business's stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total transaction of $281,041.20. Following the completion of the transaction, the insider now owns 689,652 shares in the company, valued at $6,827,554.80. The trade was a 3.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Majid Emami sold 28,392 shares of the company's stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total transaction of $281,080.80. Following the transaction, the vice president now owns 669,834 shares in the company, valued at $6,631,356.60. The trade was a 4.07% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 548,537 shares of company stock worth $5,567,760 in the last 90 days. 12.28% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SOUN. Janney Montgomery Scott LLC acquired a new position in SoundHound AI during the 4th quarter valued at approximately $411,000. Kingswood Wealth Advisors LLC acquired a new position in SoundHound AI during the 4th quarter valued at approximately $317,000. KBC Group NV increased its stake in SoundHound AI by 130.3% during the 4th quarter. KBC Group NV now owns 13,221 shares of the company's stock valued at $262,000 after purchasing an additional 7,480 shares in the last quarter. Golden State Equity Partners acquired a new position in SoundHound AI during the 4th quarter valued at approximately $458,000. Finally, JB Capital LLC acquired a new position in SoundHound AI during the 4th quarter valued at approximately $288,000. Institutional investors and hedge funds 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.