SoundHound AI (NASDAQ:SOUN) Hits New 12-Month Low – Should You Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) reached a new 52-week low during trading on Wednesday . The company traded as low as $5.79 and last traded at $5.8250, with a volume of 25097742 shares. The stock had previously closed at $6.24.

SoundHound AI News Roundup

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: MUSC Health expanded its deployment of SoundHound’s AI agent platform to retail and specialty pharmacies after the “Emily” AI agent handled more than 2.2 million patient calls across the health system. The announcement provides evidence of real-world usage, customer expansion and potential recurring revenue for SoundHound’s healthcare business. MUSC Health expands use of SoundHound’s AI agent platform
• Positive Sentiment: Analyst sentiment remains favorable: SoundHound received a consensus “Moderate Buy” recommendation. A separate bullish analysis cited a potential $47.5 billion voice-AI market, SoundHound’s conversational-AI capabilities and data-sovereignty advantages, and identified the LivePerson acquisition and transaction-based revenue as growth catalysts. SoundHound receives Moderate Buy recommendation SoundHound voice AI market analysis
• Neutral Sentiment: LivePerson’s board urged shareholders to approve its transaction with SoundHound AI and announced an investor town hall for August 5. Approval could broaden SoundHound’s customer-AI offering, but the deal still carries execution and integration risks. LivePerson urges shareholders to approve SoundHound transaction
• Negative Sentiment: A law firm solicited SoundHound shareholders regarding a possible investigation into whether company insiders breached fiduciary duties. The notice does not establish wrongdoing, but it adds headline and governance risk. SoundHound shareholder fiduciary-duty investigation notice
• Negative Sentiment: Fundamental concerns remain: SoundHound recently missed quarterly EPS expectations, remains unprofitable, and analysts expect a full-year loss. Those risks may be offsetting the positive customer and market-expansion news.

Analysts Set New Price Targets

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

SoundHound AI Trading Down 6.3%

The firm has a market cap of $2.53 billion, a PE ratio of -12.44 and a beta of 2.62. The stock’s 50 day moving average price is $7.09 and its 200 day moving average price is $7.85.

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

Insider Buying and Selling

In related news, CTO Timothy Stonehocker sold 18,802 shares of the business’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 $140,262.92. Following the transaction, the chief technology officer directly owned 502,290 shares of the company’s stock, valued at approximately $3,747,083.40. The trade was a 3.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the company’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 value of $215,168.78. Following the completion of the transaction, the senior vice president owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. This represents a 5.75% 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. Over the last three months, insiders have sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Hollencrest Capital Management boosted its stake in shares of SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after purchasing an additional 2,400 shares during the period. Northwestern Mutual Wealth Management Co. lifted its holdings 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 buying an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC boosted its position in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares during the last quarter. Danske Bank A S acquired a new stake in shares of SoundHound AI during the third quarter valued at about $26,000. Finally, SHP Wealth Management purchased a new stake in shares of SoundHound AI during the fourth quarter worth about $27,000. 19.28% of the stock is owned by institutional investors and hedge funds.

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.