SoundHound AI (NASDAQ:SOUN) Shares Down 1.5% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 1.5% during trading on Monday. The stock traded as low as $4.60 and last traded at $4.65. 12,124,652 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 26,961,523 shares. The stock had previously closed at $4.72.

Analysts Set New Price Targets

A number of brokerages have recently commented on SOUN. Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday. Piper Sandler decreased their target price on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd. Wall Street Zen downgraded shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. Yorkville Ives began coverage on shares of SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 price target on the stock. Finally, DA Davidson dropped their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $11.50.

SoundHound AI Stock Performance

The company has a 50 day moving average of $6.35 and a two-hundred day moving average of $6.97. The stock has a market cap of $2.07 billion, a PE ratio of -12.24 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. The company had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. SoundHound AI’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.19) EPS. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.32 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Keyvan Mohajer sold 137,290 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $869,045.70. Following the completion of the transaction, the chief executive officer directly owned 3,684,947 shares of the company’s stock, valued at $23,325,714.51. This represents a 3.59% decrease in their position. The sale was disclosed in a filing with the SEC, 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 71,113 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $450,145.29. Following the transaction, the chief operating officer owned 2,600,231 shares in the company, valued at $16,459,462.23. This trade represents a 2.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 288,758 shares of company stock valued at $1,828,598 over the last ninety days. 8.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently added to or reduced their stakes in SOUN. Swiss National Bank raised its position in SoundHound AI by 3.7% during the first quarter. Swiss National Bank now owns 767,100 shares of the company’s stock worth $5,270,000 after acquiring an additional 27,300 shares during the period. California State Teachers Retirement System lifted its holdings in SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after purchasing an additional 87,998 shares in the last quarter. Rockefeller Capital Management L.P. lifted its holdings in SoundHound AI by 3.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 179,327 shares of the company’s stock valued at $1,788,000 after purchasing an additional 6,096 shares in the last quarter. AXQ Capital LP grew its position in shares of SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after purchasing an additional 203,345 shares during the period. Finally, SG Americas Securities LLC acquired a new stake in shares of SoundHound AI in the first quarter valued at about $1,606,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.