SoundHound AI (NASDAQ:SOUN) Trading Down 8.4% Following Insider Selling

Key Points

• SoundHound AI shares fell 8.4% after insider selling by CFO Nitesh Sharan, who sold 60,376 shares for approximately $1.28 million.
• Despite the recent drop, analysts have mixed ratings on the stock, with a Moderate Buy average rating and a price target of $15.50.
• The company reported significant revenue growth of 216.3% year-over-year, although it missed earnings expectations with a loss of $0.19 per share.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 8.4% during trading on Friday after an insider sold shares in the company. The company traded as low as $18.53 and last traded at $19.02. Approximately 47,233,750 shares traded hands during trading, an increase of 1% from the average daily volume of 46,849,488 shares. The stock had previously closed at $20.76.

Specifically, CFO Nitesh Sharan sold 60,376 shares of the company's stock in a transaction on Tuesday, October 14th. The stock was sold at an average price of $21.21, for a total transaction of $1,280,574.96. Following the completion of the transaction, the chief financial officer directly owned 1,765,928 shares in the company, valued at $37,455,332.88. This represents a 3.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on SOUN. DA Davidson raised their target price on SoundHound AI from $15.00 to $17.00 and gave the company a "buy" rating in a research note on Wednesday, September 10th. Northland Securities upgraded shares of SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price objective on the stock in a research report on Friday, August 8th. Northland Capmk upgraded shares of SoundHound AI from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. Oppenheimer assumed coverage on SoundHound AI in a report on Thursday, September 11th. They set a "market perform" rating on the stock. Finally, Piper Sandler reiterated a "neutral" rating and set a $12.00 price objective on shares of SoundHound AI in a research report on Monday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, SoundHound AI currently has an average rating of "Moderate Buy" and an average price target of $15.50.

SoundHound AI Trading Down 8.4%

The stock has a market cap of $7.75 billion, a P/E ratio of -30.19 and a beta of 2.60. The stock's 50-day moving average is $15.58 and its 200-day moving average is $11.90.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates 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 analyst estimates of $32.88 million. During the same period in the prior year, the company posted ($0.11) earnings per share. The company's revenue was up 216.3% on a year-over-year basis. SoundHound AI has set its FY 2025 guidance at EPS. On average, equities analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds have recently modified their holdings of the company. GAMMA Investing LLC raised its stake in shares of SoundHound AI by 1,477.7% in the 1st quarter. GAMMA Investing LLC now owns 11,912 shares of the company's stock worth $97,000 after buying an additional 11,157 shares in the last quarter. Janney Montgomery Scott LLC boosted its stake in SoundHound AI by 7.3% during the first quarter. Janney Montgomery Scott LLC now owns 22,193 shares of the company's stock valued at $180,000 after buying an additional 1,502 shares in the last quarter. Insigneo Advisory Services LLC acquired a new position in SoundHound AI during the first quarter worth about $94,000. Kingswood Wealth Advisors LLC raised its position in SoundHound AI by 58.2% in the first quarter. Kingswood Wealth Advisors LLC now owns 25,275 shares of the company's stock worth $207,000 after acquiring an additional 9,300 shares in the last quarter. Finally, Silverleafe Capital Partners LLC lifted its holdings in SoundHound AI by 21.1% in the 1st quarter. Silverleafe Capital Partners LLC now owns 23,000 shares of the company's stock valued at $187,000 after acquiring an additional 4,000 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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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