SoundHound AI (NASDAQ:SOUN) Trading Down 1.8% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded down 1.8% on Friday . The company traded as low as $10.52 and last traded at $10.70. 17,722,981 shares changed hands during mid-day trading, a decline of 59% from the average session volume of 43,298,633 shares. The stock had previously closed at $10.90.

Analyst Ratings Changes

SOUN has been the subject of several recent analyst reports. HC Wainwright raised their target price on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research note on Thursday, October 16th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price objective for the company from $13.00 to $15.00 in a report on Friday, December 12th. DA Davidson reissued a “buy” rating and set a $17.00 target price on shares of SoundHound AI in a research note on Tuesday, November 18th. Oppenheimer began coverage on SoundHound AI in a report on Thursday, September 11th. They issued a “market perform” rating for the company. Finally, Piper Sandler upped their price objective on SoundHound AI from $12.00 to $15.00 and gave the stock a “neutral” rating in a report on Friday, November 7th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, SoundHound AI presently has an average rating of “Moderate Buy” and a consensus price target of $17.07.

SoundHound AI Trading Down 1.8%

The stock’s 50 day moving average is $13.55 and its 200 day moving average is $13.41. The stock has a market capitalization of $4.50 billion, a price-to-earnings ratio of -12.74 and a beta of 2.63.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.09) by $0.06. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The business had revenue of $42.05 million for the quarter, compared to analyst estimates of $40.48 million. During the same period in the prior year, the business earned ($0.04) earnings per share. The company’s quarterly revenue was up 67.6% on a year-over-year basis. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling

In related news, VP Majid Emami sold 41,167 shares of the stock in a transaction on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total transaction of $823,340.00. Following the sale, the vice president owned 608,186 shares of the company’s stock, valued at $12,163,720. This trade represents a 6.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Nitesh Sharan sold 60,376 shares of the business’s stock in a transaction dated Tuesday, October 14th. The shares were 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 of the company’s stock, valued at $37,455,332.88. The trade was a 3.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 292,064 shares of company stock valued at $5,904,921 over the last three months. Insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently bought and sold shares of SOUN. Northwestern Mutual Wealth Management Co. grew its stake in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after acquiring an additional 1,060 shares during the period. Danske Bank A S acquired a new stake in shares of SoundHound AI during the third quarter worth $26,000. Advisors Asset Management Inc. grew its position in shares of SoundHound AI by 68.4% in the second 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 during the period. Investors Research Corp increased its stake in SoundHound AI by 62.4% in the third quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after purchasing an additional 700 shares during the last quarter. Finally, AlphaQuest LLC purchased a new position in SoundHound AI during the first quarter worth about $32,000. Institutional investors and hedge funds 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.