SoundHound AI (NASDAQ:SOUN) Trading Down 3.7% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price fell 3.7% during mid-day trading on Thursday . The stock traded as low as $6.19 and last traded at $6.22. 49,657,239 shares changed hands during trading, an increase of 77% from the average daily volume of 28,004,467 shares. The stock had previously closed at $6.46.

Analyst Upgrades and Downgrades

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

SoundHound AI Stock Down 1.0%

The stock has a market capitalization of $2.67 billion, a PE ratio of -13.11 and a beta of 2.62. The business’s 50-day moving average is $7.17 and its two-hundred day moving average is $7.94.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $42.56 million. During the same quarter in the prior year, the company earned ($0.06) EPS. The business’s revenue was up 51.7% on a year-over-year basis. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of SoundHound AI 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 $140,262.92. Following the transaction, the chief technology officer owned 502,290 shares of the company’s stock, valued at $3,747,083.40. The trade was a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the sale, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. This represents a 6.10% 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. Over the last quarter, insiders sold 268,022 shares of company stock worth $1,999,444. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

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

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.