SoundHound AI (NASDAQ:SOUN) Trading Down 4.1% - Here's Why

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price dropped 4.1% during mid-day trading on Monday . The company traded as low as $10.63 and last traded at $11.10. Approximately 21,926,891 shares traded hands during mid-day trading, a decline of 45% from the average daily volume of 39,549,199 shares. The stock had previously closed at $11.57.

Wall Street Analyst Weigh In

SOUN has been the topic of a number of research analyst reports. Wedbush cut their target price on shares of SoundHound AI from $22.00 to $15.00 and set an "outperform" rating on the stock in a research note 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 on the stock in a research report on Monday, May 12th. Piper Sandler reaffirmed a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a report on Monday. Finally, DA Davidson lowered their target price on shares of SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a report on Monday, April 14th. Five investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $10.50.

SoundHound AI Stock Down 2.0%

The company has a market cap of $4.55 billion, a PE ratio of -20.53 and a beta of 2.59. The firm's fifty day simple moving average is $10.26 and its 200-day simple moving average is $11.23.

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

Insider Activity

In related news, CEO Keyvan Mohajer sold 254,376 shares of the company's stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $9.36, for a total transaction of $2,380,959.36. Following the completion of the transaction, the chief executive officer owned 1,749,790 shares of the company's stock, valued at approximately $16,378,034.40. This represents a 12.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider James Ming Hom sold 79,530 shares of the company'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 transaction of $744,400.80. Following the transaction, the insider directly owned 637,560 shares of the company's stock, valued at $5,967,561.60. This trade represents a 11.09% 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 valued at $9,247,847 in the last ninety days. 9.17% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently added to or reduced their stakes in the company. Orion Capital Management LLC acquired a new stake in SoundHound AI during the 4th quarter valued at $30,000. AlphaQuest LLC acquired a new stake in SoundHound AI during the 1st quarter valued at $32,000. Golden State Wealth Management LLC grew its holdings in SoundHound AI by 100.0% during the 1st quarter. Golden State Wealth Management LLC now owns 4,230 shares of the company's stock valued at $34,000 after purchasing an additional 2,115 shares in the last quarter. Kozak & Associates Inc. grew its holdings in SoundHound AI by 6,249.0% during the 2nd quarter. Kozak & Associates Inc. now owns 3,238 shares of the company's stock valued at $35,000 after purchasing an additional 3,187 shares in the last quarter. Finally, BIT Capital GmbH acquired a new stake in SoundHound AI during the 4th quarter valued at $43,000. 19.28% of the stock is owned by institutional investors and hedge funds.

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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