SoundHound AI (NASDAQ:SOUN) Trading Down 8.4% - Here's Why

Key Points

• SoundHound AI shares fell 8.4% in Wednesday trading, dropping from a prior close of $8.82 to around $8.08 on heavier-than-normal volume.
• Despite the pullback, Wall Street remains fairly constructive: the stock has a consensus “Moderate Buy” rating and an average price target of $14.93, based on MarketBeat data.
• The company’s latest quarter showed 51.7% revenue growth to $44.2 million, but it still missed EPS expectations by a penny and continues to post significant losses and negative margins.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price fell 8.4% during mid-day trading on Wednesday . The company traded as low as $8.07 and last traded at $8.08. 28,308,594 shares were traded during trading, an increase of 2% from the average session volume of 27,623,863 shares. The stock had previously closed at $8.82.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on SOUN. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. DA Davidson restated a "buy" rating and set a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. Zacks Research upgraded SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. HC Wainwright cut their price target on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. Finally, Piper Sandler restated a "neutral" rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Trading Down 8.4%

The stock has a 50 day moving average of $7.72 and a 200-day moving average of $9.19. The company has a market capitalization of $3.50 billion, a P/E ratio of -17.19 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. During the same quarter last year, the firm posted ($0.06) earnings per share. The company's revenue was up 51.7% compared to the same quarter last year. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.43 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, COO Michael Zagorsek sold 52,968 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $359,652.72. Following the sale, the chief operating officer owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. This represents a 2.96% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the sale, the chief financial officer owned 1,661,121 shares in the company, valued at $11,279,011.59. The trade was a 2.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 307,973 shares of company stock worth $2,091,110. Company insiders own 8.84% of the company's stock.

Institutional Trading of SoundHound AI

Several hedge funds and other institutional investors have recently bought and sold shares of SOUN. Royal Bank of Canada raised its holdings in SoundHound AI by 71.3% during the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company's stock valued at $1,301,000 after buying an additional 66,714 shares during the period. Integrated Wealth Concepts LLC raised its holdings in SoundHound AI by 8.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock valued at $119,000 after buying an additional 1,201 shares during the period. NewEdge Advisors LLC raised its holdings in SoundHound AI by 12.9% during the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company's stock valued at $333,000 after buying an additional 4,692 shares during the period. Goldman Sachs Group Inc. increased its stake in SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock worth $21,434,000 after purchasing an additional 1,085,473 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of SoundHound AI by 10.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company's stock worth $5,620,000 after purchasing an additional 63,398 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.