SoundHound AI (NASDAQ:SOUN) Shares Down 7.4% - What's Next?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 7.4% on Tuesday . The stock traded as low as $9.98 and last traded at $9.94. Approximately 17,150,639 shares traded hands during mid-day trading, a decline of 57% from the average daily volume of 39,580,592 shares. The stock had previously closed at $10.73.

Analyst Ratings Changes

Several equities analysts have recently commented on SOUN shares. HC Wainwright cut their price target on SoundHound AI from $26.00 to $18.00 and set a "buy" rating on the stock in a research note on Monday, May 12th. DA Davidson dropped 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. Piper Sandler assumed coverage on shares of SoundHound AI in a report on Tuesday, May 27th. They issued an "overweight" rating and a $12.00 price target for the company. Finally, Wedbush dropped their price objective 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. Four investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, SoundHound AI currently has a consensus rating of "Moderate Buy" and a consensus target price of $10.50.

SoundHound AI Stock Performance

The firm's 50 day simple moving average is $9.92 and its 200 day simple moving average is $11.78. The firm has a market capitalization of $4.44 billion, a price-to-earnings ratio of -20.10 and a beta of 2.59.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.09) by $0.03. SoundHound AI had a negative return on equity of 68.55% and a negative net margin of 184.34%. The firm had revenue of $29.13 million for the quarter, compared to analyst estimates of $30.38 million. During the same period last year, the company earned ($0.07) earnings per share. SoundHound AI's revenue for the quarter was up 151.2% compared to the same quarter last year. As a group, sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity

In related news, insider James Ming Hom sold 79,530 shares of the business's stock in a transaction on Friday, June 20th. The shares were sold at an average price of $9.36, for a total value of $744,400.80. Following the completion of the sale, the insider 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Keyvan Mohajer sold 254,376 shares of the business's stock in a transaction dated Friday, June 20th. The stock was sold at an average price of $9.36, for a total transaction of $2,380,959.36. Following the sale, the chief executive officer directly owned 1,749,790 shares of the company's stock, valued at $16,378,034.40. This represents a 12.69% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 961,289 shares of company stock worth $9,247,847. Insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Orion Capital Management LLC acquired a new position in shares of SoundHound AI during the 4th quarter worth approximately $30,000. AlphaQuest LLC purchased a new stake in SoundHound AI in the 1st quarter valued at $32,000. Golden State Wealth Management LLC boosted its position in shares of 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 acquiring an additional 2,115 shares during the last quarter. BIT Capital GmbH purchased a new stake in SoundHound AI in the fourth quarter valued at $43,000. Finally, Quarry LP raised its stake in shares of SoundHound AI by 1,552.7% in the 1st quarter. Quarry LP now owns 5,272 shares of the company's stock valued at $43,000 after acquiring an additional 4,953 shares during the period. Hedge funds and other institutional investors 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.