SoundHound AI (NASDAQ:SOUN) Shares Gap Down – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price gapped down prior to trading on Friday . The stock had previously closed at $15.25, but opened at $11.14. SoundHound AI shares last traded at $11.51, with a volume of 80,125,043 shares.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Northland Securities raised their price target on shares of SoundHound AI from $6.00 to $8.00 and gave the stock a “market perform” rating in a research report on Tuesday, January 14th. Barclays restated a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a research report on Wednesday, November 13th. Wedbush raised their price target on shares of SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a research report on Monday, December 16th. LADENBURG THALM/SH SH restated a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a research report on Wednesday, November 13th. Finally, HC Wainwright restated a “buy” rating and issued a $26.00 price target on shares of SoundHound AI in a research report on Monday, January 13th. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $12.36.

SoundHound AI Stock Performance

The stock has a market capitalization of $4.30 billion, a P/E ratio of -30.51 and a beta of 2.56. The company’s 50-day moving average is $16.70 and its two-hundred day moving average is $9.45. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.01. The firm had revenue of $25.10 million for the quarter, compared to the consensus estimate of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. SoundHound AI’s quarterly revenue was up 88.7% compared to the same quarter last year. During the same period last year, the firm posted ($0.09) EPS. As a group, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 465,394 shares of the business’s stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $15.04, for a total transaction of $6,999,525.76. Following the sale, the chief executive officer now directly owns 2,299,148 shares in the company, valued at approximately $34,579,185.92. The trade was a 16.83 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Lawrence Marcus sold 20,000 shares of the business’s stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $20.47, for a total transaction of $409,400.00. Following the sale, the director now owns 108,117 shares in the company, valued at $2,213,154.99. This trade represents a 15.61 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,782,918 shares of company stock worth $45,391,343 in the last ninety days. 12.28% of the stock is owned by insiders.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently made changes to their positions in SOUN. AQR Capital Management LLC raised its position in shares of SoundHound AI by 40.2% during the 2nd quarter. AQR Capital Management LLC now owns 29,417 shares of the company’s stock worth $116,000 after buying an additional 8,440 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in shares of SoundHound AI by 101.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 106,076 shares of the company’s stock worth $419,000 after purchasing an additional 53,490 shares during the last quarter. Truist Financial Corp grew its stake in shares of SoundHound AI by 432.9% in the 2nd quarter. Truist Financial Corp now owns 96,729 shares of the company’s stock worth $382,000 after purchasing an additional 125,785 shares during the last quarter. Sanctuary Advisors LLC acquired a new position in shares of SoundHound AI in the 2nd quarter worth approximately $104,000. Finally, Creative Planning acquired a new position in shares of SoundHound AI in the 3rd quarter worth approximately $91,000. 19.28% of the stock is currently owned by institutional investors.

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.