SoundHound AI (NASDAQ:SOUN) Shares Down 7.1% - Time to Sell?

Key Points

• SoundHound AI's stock price fell 7.1% to $13.77, with a trading volume significantly below its average.
• Analysts have mixed views on the stock, with upgrades from several brokerages raising target prices, while one firm downgraded its rating to "sell".
• The company reported strong revenue growth of 216.3% year-over-year, although it missed earnings expectations with a loss of $0.19 EPS.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price fell 7.1% during trading on Tuesday . The company traded as low as $13.71 and last traded at $13.77. 18,469,187 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 41,084,754 shares. The stock had previously closed at $14.82.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on SOUN. Piper Sandler reiterated a "neutral" rating and issued a $12.00 target price on shares of SoundHound AI in a report on Monday, July 14th. LADENBURG THALM/SH SH upgraded SoundHound AI from a "neutral" rating to a "buy" rating and upped their target price for the company from $9.00 to $16.00 in a research report on Monday, August 11th. HC Wainwright dropped their target price on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. Wedbush upped their target price on SoundHound AI from $15.00 to $16.00 and gave the company an "outperform" rating in a research report on Friday, August 8th. Finally, Wall Street Zen lowered SoundHound AI from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, SoundHound AI currently has a consensus rating of "Moderate Buy" and a consensus price target of $13.36.

SoundHound AI Price Performance

The company has a 50-day simple moving average of $11.65 and a 200 day simple moving average of $10.54.

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). 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 during the quarter, compared to analysts' expectations of $32.88 million. During the same quarter in the prior year, the company posted ($0.11) EPS. The company's revenue for the quarter was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. As a group, sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling at SoundHound AI

In other news, CFO Nitesh Sharan sold 111,111 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 $1,039,998.96. Following the completion of the transaction, the chief financial officer directly owned 1,442,900 shares of the company's stock, valued at $13,505,544. This represents a 7.15% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 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 value of $744,400.80. Following the transaction, the insider directly owned 637,560 shares of the company's stock, valued at approximately $5,967,561.60. The trade was a 11.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 913,317 shares of company stock worth $8,679,813. 9.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. raised its stake in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after buying an additional 1,060 shares during the period. Advisors Asset Management Inc. lifted its holdings in SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock valued at $27,000 after purchasing an additional 1,023 shares in the last quarter. Orion Capital Management LLC purchased a new position in SoundHound AI in the 4th quarter valued at $30,000. AlphaQuest LLC purchased a new position in SoundHound AI in the 1st quarter valued at $32,000. Finally, Huntington National Bank lifted its holdings in SoundHound AI by 48.8% in the 2nd quarter. Huntington National Bank now owns 3,050 shares of the company's stock valued at $33,000 after purchasing an additional 1,000 shares in the last quarter. 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.