SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.7% - What's Next?

Key Points

• SoundHound AI's stock dropped 3.7% to $12.54, with a notable decline in trading volume, down 53% from its average.
• Analysts have set a consensus price target of $13.36 for SoundHound AI, with varying ratings from "Strong Buy" to "Sell" reflecting a mix of optimism and caution.
• In its quarterly earnings report, SoundHound AI missed earnings expectations but achieved a 216.3% year-over-year revenue increase, reporting $42.68 million in revenue.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) traded down 3.7% on Tuesday . The company traded as low as $12.14 and last traded at $12.54. 19,481,906 shares changed hands during mid-day trading, a decline of 53% from the average session volume of 41,848,906 shares. The stock had previously closed at $13.02.

Wall Street Analyst Weigh In

A number of research firms have issued reports on SOUN. Northland Capmk upgraded SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. Piper Sandler reiterated a "neutral" rating and set a $12.00 price objective on shares of SoundHound AI in a report on Monday, July 14th. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 target price on the stock in a research report on Friday, August 8th. Wall Street Zen downgraded SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Finally, Wedbush raised their price target on shares of SoundHound AI from $15.00 to $16.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.36.

SoundHound AI Price Performance

The firm has a 50-day moving average of $12.21 and a 200 day moving average of $10.40. The stock has a market capitalization of $5.31 billion, a price-to-earnings ratio of -20.57 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) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.13). SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The company had revenue of $42.68 million for the quarter, compared to analyst estimates of $32.88 million. During the same period last year, the firm earned ($0.11) EPS. The firm's revenue for the quarter was up 216.3% compared to the same quarter last year. SoundHound AI has set its FY 2025 guidance at EPS. On average, equities analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity

In other news, COO Michael Zagorsek sold 117,180 shares of SoundHound AI stock in a transaction dated Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $1,096,804.80. Following the completion of the transaction, the chief operating officer owned 1,346,455 shares of the company's stock, valued at $12,602,818.80. This trade represents a 8.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Majid Emami sold 60,295 shares of the business's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $10.00, for a total transaction of $602,950.00. Following the transaction, the vice president owned 477,657 shares in the company, valued at $4,776,570. This represents a 11.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 913,317 shares of company stock valued at $8,679,813. 9.17% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

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