SoundHound AI (NASDAQ:SOUN) Trading Down 4.4% - What's Next?

Key Points

• SoundHound AI's stock fell by 4.4% recently, trading as low as $18.01 after closing at $19.06, with a total of approximately 43 million shares traded.
• Analysts have varying ratings on SoundHound AI, with a shift towards optimism; several firms raised their price targets, resulting in an average price target of $15.50.
• The company reported substantial revenue growth of 216.3% year-over-year during the last quarter, although it missed EPS estimates with a loss of ($0.19).

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price dropped 4.4% during trading on Tuesday . The stock traded as low as $18.01 and last traded at $18.23. Approximately 43,105,875 shares were traded during trading, a decline of 8% from the average daily volume of 46,764,184 shares. The stock had previously closed at $19.06.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. 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. DA Davidson boosted their price target on SoundHound AI from $15.00 to $17.00 and gave the stock a "buy" rating in a research report on Wednesday, September 10th. HC Wainwright upped their price objective on SoundHound AI from $18.00 to $26.00 and gave the stock a "buy" rating in a research note on Thursday, October 16th. LADENBURG THALM/SH SH raised shares of SoundHound AI from a "neutral" rating to a "buy" rating and raised their target price for the company from $9.00 to $16.00 in a research note on Monday, August 11th. Finally, Northland Capmk upgraded shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $15.50.

SoundHound AI Stock Performance

The business has a fifty day moving average of $15.75 and a two-hundred day moving average of $12.11. The firm has a market capitalization of $7.43 billion, a price-to-earnings ratio of -28.92 and a beta of 2.60.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.19) EPS 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 net margin of 171.81% and a negative return on equity of 73.13%. SoundHound AI's revenue for the quarter was up 216.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. As a group, sell-side analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI news, CTO Timothy Stonehocker sold 70,524 shares of the company's stock in a transaction on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $1,410,480.00. Following the transaction, the chief technology officer directly owned 606,525 shares of the company's stock, valued at $12,130,500. This represents a 10.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Keyvan Mohajer sold 138,523 shares of SoundHound AI stock in a transaction on Monday, September 22nd. The stock was sold at an average price of $16.00, for a total value of $2,216,368.00. Following the sale, the chief executive officer directly owned 2,461,267 shares of the company's stock, valued at $39,380,272. This represents a 5.33% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 785,917 shares of company stock valued at $13,955,610 in the last ninety days. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Investors Research Corp increased its holdings in shares of SoundHound AI by 62.4% during the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after purchasing an additional 700 shares during the period. Financial Consulate Inc. acquired a new stake in SoundHound AI during the third quarter worth approximately $32,000. Sound Income Strategies LLC increased its stake in SoundHound AI by 37.3% during the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after acquiring an additional 575 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after acquiring an additional 1,060 shares in the last quarter. Finally, Advisors Asset Management Inc. lifted its position in shares of SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock valued at $27,000 after acquiring an additional 1,023 shares during the period. 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.

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