SoundHound AI (NASDAQ:SOUN) Trading Down 6.3% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 6.3% during trading on Thursday . The company traded as low as $8.95 and last traded at $9.08. Approximately 23,589,013 shares changed hands during trading, a decline of 11% from the average daily volume of 26,594,502 shares. The stock had previously closed at $9.69.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of recent research reports. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. DA Davidson set a $14.00 price target on SoundHound AI in a report on Thursday, January 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Piper Sandler reduced their price target on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a report on Monday, January 5th. Finally, Zacks Research lowered shares of SoundHound AI from a “hold” rating to a “strong sell” rating in a report on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, SoundHound AI has a consensus rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Stock Performance

The firm has a market cap of $3.81 billion, a PE ratio of -10.81 and a beta of 2.65. The stock’s fifty day moving average price is $11.17 and its 200-day moving average price is $13.48.

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

Insider Transactions at SoundHound AI

In related news, CFO Nitesh Sharan sold 60,780 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $685,598.40. Following the transaction, the chief financial officer owned 1,705,148 shares in the company, valued at $19,234,069.44. This trade represents a 3.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Majid Emami sold 42,600 shares of the business’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $480,528.00. Following the sale, the senior vice president directly owned 565,586 shares in the company, valued at $6,379,810.08. This trade represents a 7.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 462,265 shares of company stock valued at $5,216,518 over the last quarter. Insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. raised its stake in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares in the last quarter. Danske Bank A S bought a new position in shares of SoundHound AI in the third quarter valued at approximately $26,000. Advisors Asset Management Inc. lifted its stake 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 worth $27,000 after buying an additional 1,023 shares during the last quarter. Investors Research Corp boosted its holdings in shares of SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after buying an additional 700 shares during the period. Finally, Financial Consulate Inc. bought a new stake in shares of SoundHound AI during the 3rd quarter worth $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.