SoundHound AI (NASDAQ:SOUN) Trading Down 4.6% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded down 4.6% during trading on Tuesday . The company traded as low as $6.55 and last traded at $6.64. 34,266,091 shares were traded during trading, an increase of 25% from the average daily volume of 27,328,818 shares. The stock had previously closed at $6.96.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, DA Davidson reissued a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Down 1.8%

The company’s fifty day moving average is $7.68 and its 200-day moving average is $8.27. The company has a market cap of $2.89 billion, a PE ratio of -14.19 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The company had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company’s revenue for the quarter was up 51.7% on a year-over-year basis. During the same period last year, the firm posted ($0.06) EPS. Equities research analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other news, CTO Timothy Stonehocker sold 18,802 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the sale, the chief technology officer owned 502,290 shares of the company’s stock, valued at $3,747,083.40. This represents a 3.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $484,855.24. Following the completion of the transaction, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. The trade was a 3.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 268,022 shares of company stock valued at $1,999,444 in the last 90 days. 8.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Danske Bank A S purchased a new position in SoundHound AI during the third quarter valued at $26,000. Northwestern Mutual Wealth Management Co. raised its stake in SoundHound AI by 83.1% during 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. Dogwood Wealth Management LLC lifted its holdings in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares in the last quarter. SHP Wealth Management purchased a new position in SoundHound AI during the fourth quarter valued at approximately $27,000. Finally, Parallel Advisors LLC boosted its holdings in SoundHound AI by 42.8% in the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after buying an additional 960 shares during the period. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

About SoundHound AI

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.