SoundHound AI (NASDAQ:SOUN) Shares Down 1% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 1% on Wednesday . The stock traded as low as $11.78 and last traded at $11.82. Approximately 19,777,458 shares traded hands during trading, a decline of 56% from the average daily volume of 45,282,531 shares. The stock had previously closed at $11.94.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on SOUN shares. Oppenheimer assumed coverage on SoundHound AI in a research note on Thursday, September 11th. They issued a “market perform” rating on the stock. Northland Capmk upgraded shares of SoundHound AI from a “hold” rating to a “strong-buy” rating in a report on Friday, August 8th. DA Davidson reissued a “buy” rating and set a $17.00 price objective on shares of SoundHound AI in a research report on Tuesday, November 18th. Wall Street Zen cut shares of SoundHound AI from a “hold” rating to a “sell” rating in a research report on Saturday, August 9th. Finally, Wedbush reiterated an “outperform” rating and set a $16.00 price target on shares of SoundHound AI in a research report on Thursday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” and an average price target of $17.42.

SoundHound AI Stock Performance

The firm has a market capitalization of $4.97 billion, a P/E ratio of -14.10 and a beta of 2.60. The business has a fifty day moving average of $16.22 and a 200-day moving average of $13.26.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.06. The firm had revenue of $42.05 million for the quarter, compared to analysts’ expectations of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The company’s quarterly revenue was up 67.6% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.04) EPS. SoundHound AI has set its FY 2025 guidance at EPS. On average, equities research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CTO Timothy Stonehocker sold 70,524 shares of the firm’s stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $1,410,480.00. Following the completion of the transaction, the chief technology officer directly owned 606,525 shares of the company’s stock, valued at approximately $12,130,500. This trade represents a 10.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Majid Emami sold 41,167 shares of SoundHound AI stock in a transaction that occurred on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total transaction of $823,340.00. Following the completion of the sale, the vice president owned 608,186 shares of the company’s stock, valued at approximately $12,163,720. The trade was a 6.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 787,260 shares of company stock valued at $13,973,056. 9.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in the stock. Virtu Financial LLC bought a new stake in SoundHound AI during the first quarter valued at $2,395,000. Northern Trust Corp boosted its position in shares of SoundHound AI by 2.5% during the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company’s stock valued at $24,190,000 after acquiring an additional 72,766 shares during the last quarter. Y Intercept Hong Kong Ltd purchased a new position in shares of SoundHound AI during the second quarter worth about $3,696,000. Liontrust Investment Partners LLP bought a new position in shares of SoundHound AI in the first quarter worth approximately $1,639,000. Finally, First Manhattan CO. LLC. purchased a new stake in SoundHound AI in the first quarter valued at approximately $985,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.